Reuters reports that the company is under pressure to maintain the growth rate of its Azure cloud unit. Over the past few quarters, the personal computer market has been hit by the recession and this has affected sales of Microsoft devices and Windows. Microsoft will announce the results of the last quarter on January 24. The company had around 221,000 workers at the end of the June quarter of last year. Of these, around 1,22,000 were in the US and the rest in other countries. The company’s decision to lay off indicates that staff cuts may continue in the technology sector.
Microsoft CEO Satya Nadella recently warned of the challenges for the tech sector for two years. He said that Microsoft will also have to face these challenges and that technology companies must become efficient. Earlier, Meta, which runs Amazon and the social networking site Facebook, also laid off a large number of workers. Billionaire Elon Musk has fired half the company’s staff after taking control of the microblogging site Twitter.
More than 11,000 employees have been laid off at Meta. This is about 13 percent of the company’s total workforce. This was one of the biggest layoffs at tech companies last year. Meta faces difficulties such as escalating costs and weak advertising. The business of technology companies grew rapidly during the pandemic and its impact was also seen in their valuations. The valuations of these companies have dropped significantly in the past year due to rising inflation and interest rates. Mark Zuckerberg, chief executive of Meta, told employees in a message: “Weak macroeconomic conditions, increased competition, and reduced advertising have resulted in our revenues being well below expectations. I made a mistake.” mistake and I take responsibility”.
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