Microsoft To Lay Off More Employees From Support, Sales, Customer Service Teams: Report

Microsoft reportedly revealed that it would be cutting 276 positions in its home state of Washington, with 66 of those positions being virtual.

Back in January, Microsoft CEO Satya Nadella attributed the substantial layoffs to over-hiring and macroeconomic conditions.

Microsoft is planning additional layoffs on top of the 10,000 job cuts announced in January, as per a report by GeekWire. The affected employees will primarily be from customer service, support, and sales departments. These layoffs coincide with the beginning of Microsoft's 2024 fiscal year and just before the annual Inspire partner-focused conference. Additionally, the Xbox maker on Monday received a green signal from a US judge to go ahead with its $69-billion acquisition of Activision Blizzard.

In a notice filed on Monday, Microsoft revealed that it would be cutting 276 positions in its home state of Washington, with 66 of those positions being virtual, as reported by CNBC. The company is expected to announce its earnings for the 2023 fiscal year and a fourth fiscal quarter later this month. Similar job reductions were implemented by Microsoft in the previous year as well, albeit on a smaller scale.

A Microsoft spokesperson explained that these organizational and workforce adjustments are routine and necessary for managing the company effectively. They further emphasised that Microsoft remains committed to investing in strategic growth areas to support customers and partners in the future.

Back in January, Microsoft CEO Satya Nadella attributed the substantial layoffs to over-hiring and macroeconomic conditions. With the US facing a recession and high inflation, several other technology companies, including Amazon and Google, have also downsized their workforce. According to Layoff.fyi, a tracker of job reductions, a total of 216,328 employees have been laid off by 839 tech companies in 2023 so far.

As mentioned earlier, the potential deal between Microsoft and Activision, worth $69 billion, is nearing its completion before the deadline of July 18. A US judge ruled in favour of the acquisition, dismissing the Federal Trade Commission's (FTC) request for a preliminary injunction. However, the FTC has the opportunity to appeal the decision until midnight on July 14. The deal is expected to be finalised in all regions except the UK, where it was vetoed in May, within a week.