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Microsoft Set For Layoffs Ahead Of Q2 Earnings: Report

Wade Tyler Millward

Microsoft plans to cut about 11,000 workers worldwide, according to a report.

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Microsoft plans to cut about 11,000 workers worldwide, about 5 percent of its employee base, in the coming days, according to Sky News.

In those layoffs, the Redmond, Wash.-based vendor could cut as many as a third of its recruiting staff, according to a separate report from Business Insider. The company could take as long as two years to get back to its rate before it froze hiring.

The company employs about 221,000 people – about 122,000 in the United States – and plans to report earnings for its second fiscal quarter on Jan. 24.

[RELATED: ‘Brutal’ Citrix, Tibco Layoffs Hit Thousands Of Employees: Sources]

Microsoft Layoffs 2023

A Microsoft spokesperson told CRN in an email that the vendor does “not comment on rumor.”

Along with the layoffs, some teams now require executive-level approval for hiring and job candidates are seeing some offers slashed by as much as 30 percent, according to Business Insider.

The cuts will also include roles in engineering, according to Bloomberg. The cuts should be larger than layoff rounds from Microsoft last year.

Microsoft has a history of conducting layoffs ahead of earnings, as it did in October and July last year. Those layoffs hit less than 1 percent of the company, according to Bloomberg.

The Microsoft layoffs are not a surprise given reports from the tech giant and Amazon around shaky cloud spending entering 2023.

The tech industry as a whole has been hit by a wave of cutbacks as the sector grapples with inflation and rising interest rates in the U.S. and concerns over a possible global recession. Citrix, Informatica, Salesforce, Cisco, HP, Intel, Elastic, Aqua Security, Microsoft-focused AvePoint and N-able are some of the vendors to announce cuts recently.

Wade Tyler Millward

Wade Tyler Millward is an associate editor covering cloud computing and the channel partner programs of Microsoft, IBM, Red Hat, Oracle, Salesforce, Citrix and other cloud vendors. He can be reached at wmillward@thechannelcompany.com.

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