Tech giants grapple with tough global economy, Microsoft ‘cuts around 1,000 jobs’ | Business News

Microsoft acknowledged a “structural adjustment” following reports that the U.S. tech company was laying off about 1,000 jobs this week.

Axiom reported Tuesday that the company is wielding an axe across multiple divisions — a slowdown in hiring across the industry this year in the face of soaring inflation and stagnant economic growth.

Big tech companies, for example, have been the big winners during the COVID-19 pandemic, as investor money pours into stocks that support a work-from-home and new hybrid future of work.

They’re called “growth stocks,” and aside from many healthcare and logistics stocks, they’re seen as the only game in town because lockdowns as we know them have taken over and stifled activity.

But tech stocks soon came under pressure as the pace of rising global prices squeezed consumer and business budgets.

In the U.S., a strong dollar has also hit multinationals’ overseas earnings, as profits are squeezed when they book books at their respective U.S. headquarters.

A Microsoft spokesperson said of the layoffs: “Like all companies, we regularly assess our business priorities and make structural adjustments accordingly.

“We will continue to invest in our business and hire in key growth areas over the coming year.”

The layoffs affect less than 1 percent of Microsoft’s roughly 221,000 employees.

Meta — Facebook’s owner — Twitter and Snap Inc have both cut jobs and reduced hiring in recent months.

Microsoft’s stock has fallen by nearly a third in the past year.

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