Microsoft has laid off off employees across multiple divisions, according to Axios, making it the latest big player in the tech space to cut jobs in the face of an economic downturn. A spokesperson told the publication: "Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly. We will continue to invest in our business and hire in key growth areas in the year ahead." While the tech giant didn't say which divisions were affected and how many people had been let go, Axios said there were under 1,000 layoffs.
The Verge Senior Editor Tom Warren added that the job cuts included people in the Experiences and Devices, Xbox and legal groups. Some of them were apparently veteran workers in the company. As Axios notes, the job cuts occurred across levels and regions, which means workers outside the US had also been laid off.
Microsoft showed signs that it was looking to operate with a leaner workforce this year when it slowed down hiring for its Windows, Office and Teams groups, citing the need to realign staffing priorities. In July, it laid off less than one percent (around 1,800) of its 180,000 workforce and then removed open job listings for its Azure cloud and security groups. Other tech companies have made similar moves over the past few months. Google also slowed its hiring due to what CEO Sundar Pichai called an "uncertain global economic outlook." Meanwhile, Meta reportedly started cutting staff and reorganizing teams to cut costs after Mark Zuckerberg warned employees that the company was facing "serious times."