Microsoft profit drops 12% to $16.4B as revenue grows at its slowest pace in six years

Author: Yuvi January 25, 2023


In recent months, a slew of tech companies have announced cost-cutting measures, with Amazon, Apple and Google-parent Alphabet all announcing hiring slowdowns or freezes.

For the tech sector, the pandemic boom has turned to a post-pandemic bust, as rising interest rates batter share prices and inflation cuts into profits.

The sector shed 9,587 jobs in October, the highest monthly total since November 2020, according to data from consulting firm Challenger, Gray & Christmas cited by Bloomberg.

Total job cuts announced by US-based employers jumped 13 percent to 33,843 in October, the highest since February 2021, a report said.

meta

The Facebook-parent said in November it would cut 13 percent of its workforce, or more than 11,000 employees, in one of the biggest tech layoffs this year as it grapples with a weak advertising market and mounting costs.

Meta said it would cut 13 percent of its workforce, or more than 11,000 employees, in one of the biggest tech layoffs this year.

Like its peers, Meta aggressively hired during the pandemic to meet a surge in social media usage by stuck-at-home consumers.

But but the pandemic boom-times have petered out as advertisers and consumers pull the plug on spending in the face of soaring costs and rapidly rising interest rates.

After plunging billions into CEO Mark Zuckerberg’s Metaverse vision with little to show for it, Meta has been faced with rising costs and shrinking profits.

Meta, once worth more than $1 trillion, is now valued at $256 billion after losing more than 70 percent of its value last year alone.

‘Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected,’ Zuckerberg said in a message to employees, according to Reuters.

‘I got this wrong, and I take responsibility for that.’

Zuckerberg delivered the grim news about job cuts on a call with hundreds of Meta executives

Zuckerberg delivered the grim news about job cuts on a call with hundreds of Meta executives

On a short call, a red-eyed Zuckerberg addressed employees but took no questions.

He stuck to a script that closely followed the wording in the morning’s blogpost and called the increased investments in e-commerce a ‘big mistake in planning.’

Twitter

Twitter laid off half its workforce across teams ranging from communications and content curation to product and engineering following Elon Musk’s $44 billion takeover.

The cutbacks affected roughly 3,700 employees, who learned their fate by email last week.

However, Bloomberg reported Twitter was reaching out to dozens of employees who lost their jobs, asking them to return.

Twitter laid off half its workforce across teams ranging from communications and content curation to product and engineering

Twitter laid off half its workforce across teams ranging from communications and content curation to product and engineering

Musk previously said there was no other choice but to impose mass layoffs as the company loses hundreds of millions of dollars every year and needs a financial overhaul.

Musk previously said there was no other choice but to impose mass layoffs as the company loses hundreds of millions of dollars every year and needs a financial overhaul.

Salesforce

In January, cloud-based software company Salesforce announced it would layoff 10 percent of its employees or about 8,000 workers.

CEO Marc Benioff cited a rough period for the tech sector as well as over-hiring during COVID-19 leading to the decision.

Several weeks ago, it quietly laid off hundreds of employees.

‘Our sales performance process drives accountability. Unfortunately, that can lead to some leaving the business, and we support them through their transition,’ a Salesforce spokesperson told CNBC in a statement several weeks ago.

Salesforce had 73,541 employees at the beginning of last year – it is the largest employer in the San Francisco area.

The company said in an August filing that headcount rose 36 percent in the past year “to meet the higher demand for services from our customers.”

amazon

Amazon said it would lay off 18,000 corporate and technology jobs in what would be the largest job cuts in the company’s history.

The move comes as the company reportedly lost $1trillion over the year after its stock plummeted from a high during the pandemic.

If the company goes through with its proposal to cut 10,000 jobs, it would lose about 3 percent of Amazon's corporate employees.

If the company goes through with its proposal to cut 10,000 jobs, it would lose about 3 percent of Amazon’s corporate employees.

The move comes after the company put a hiring freeze in place, affecting major teams including Prime Video, Alexa and Amazon Fresh.

‘We’re facing an unusual macroeconomic environment, and want to balance our hiring and investments with being thoughtful about this economy,’ Beth Galetti, senior vice president of people experience and technology at Amazon, wrote in a memo, which was seen by the Wall Street Journal.

intel

Intel Corp’s CEO Pat Gelsinger told Reuters the ‘people actions’ would be part of a cost-reduction plan.

The chipmaker said recently it would reduce costs by $3 billion in 2023, then ramping that up to $10 billion by 2025.

The adjustments would start in the fourth quarter, Gelsinger said, but did not specify how many employees would be affected.

Some Intel divisions, including the sales and marketing group, could be cut by up to 20 percent, Bloomberg News reported last month, citing people with knowledge of the situation.

Chipmaker Intel is reportedly planning major layoffs, likely numbering in the thousands, in the face of a slowdown in the personal computer market

Chipmaker Intel is reportedly planning major layoffs, likely numbering in the thousands, in the face of a slowdown in the personal computer market

The company had 113,700 employees as of July, when it slashed its annual sales forecast by $11 billion after missing estimates for second-quarter results.

Intel, based in Santa Clara, California, declined to comment on the job cuts when reached by DailyMail.com in October.

Intel has been battered by shifting market trends, including the decline of traditional personal computers as smartphones and tablets rise in popularity.

Last quarter, global PC shipments, including desktops and laptops, declined another 15 percent from a year ago, according to IDC.

Microsoft

Microsoft in January initiated layoffs of 10,000 employees, citing slowing customer demand and a negative economic environment.

‘We’re also seeing organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one,’ CEO Satya Nadella said in a company memo.

The layoffs affected nearly 5 percent of Microsoft’s global workforce.

Microsoft previously laid off under 1,000 employees across several divisions last year, according to Axios.

In a statement, Microsoft executives said: ‘Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly.

Microsoft laid off under 1,000 employees across several divisions last month, according to Axios.

Microsoft laid off under 1,000 employees across several divisions last month, according to Axios.

‘We will continue to invest in our business and hire in key growth areas in the year ahead.’

Microsoft executives previously announced in July that it was laying off less than 1 percent of its workforce and significantly slowing hiring, as its revenue fell short of investor expectations.

The company recorded only $51.9 billion in revenue during the second quarter of the year, but was expected to rake in $52.4 billion.

It had previously recorded blockbuster growth during the COVID pandemic, when consumers and businesses turned to its products as they shifted to a work-from-home model.

lyft

Ride-hailing firm Lyft said it would lay off 13 percent of its workforce, or about 683 employees, after it already cut 60 jobs earlier this year and froze hiring in September.

Lyft said in a regulatory filing it would likely incur $27 to $32 million in restructuring charges related to the layoffs.

‘We are not immune to the realities of inflation and a slowing economy,’ Lyft’s founders wrote in the memo to staffers.

Ride-hailing firm Lyft said it would lay off 13 percent of its workforce, or about 683 employees, after it already cut 60 jobs earlier this year.

Ride-hailing firm Lyft said it would lay off 13 percent of its workforce, or about 683 employees, after it already cut 60 jobs earlier this year.

The company’s share price has fallen 76 percent since the beginning of the year and currently stands at around $10, compared to nearly $45 in January.

Announcing the job cuts in a memo seen by the Wall Street Journal, Lyft founders John Zimmer and Logan Green told staff: ‘There are several challenges playing out across the economy.

‘We’re facing a probable recession sometime in the next year and rideshare insurance costs are going up.

‘We worked hard to bring down costs this summer: we slowed, then froze hiring; cut spending; and paused less-critical initiatives.

‘Still, Lyft has to become leaner, which requires us to part with incredible team members.’

Lyft has about 4,000 employees, not including its drivers.

Spotify

The music streaming service said on January 22 it plans to cut 6% of its workforce, an estimated 588 employees from its 9,800 full-time staff.

Spotify said it would incur about $38 million in severance-related charges.

The company, whose CEO is Daniel Ek, said its chief content and advertising business officer Dawn Ostroff will also depart.

Spotify said on January 22 it plans to cut 6% of its workforce, an estimated 588 employees.

Spotify said on January 22 it plans to cut 6% of its workforce, an estimated 588 employees.

apple

Although Apple has not yet announced any major layoffs, CEO Tim Cook told CBS Mornings that it is slowing some hiring as well.

‘What we’re doing as a result of being in this period, is we’re being very deliberate in our hiring,’ he said. ‘That means we’re continuing to hire, but not everywhere in the company we’re hiring.’

At the same time, though, Cook said “we don’t believe you can save your way to prosperity.”

‘We think you invest your way to it,’ he said.

Author: Yuvi

My name is Yuvi, I work as Sub Editor at newscinema.in

25 January, 2023, 8:34 am

News Cinema on twitter News Cinema on facebook

Wednesday, 25th January 2023

Latest Web Stories

More Stories
Firefighter took selfie in front of smoldering Grenfell Tower and used it for his Tinder profile
Anupam Kher receives Grand Tycoon Global Achievers Award for ‘The Kashmir Piles’
King Charles and Queen Consort Camilla host a Buckingham Palace reception
She Took On Atlanta’s Gangs. Now she may be coming for Trump.
Forget Pandemic Puppies. Meet the Inflation Chicken.
Education Firms That Serve Hasidic Schools Are Barred Amid Fraud Inquiry
Power to Punish LIV Golfers Faces a Legal Test in Europe
The Fed increased its interest rates. This is what it means for your personal finances
Viral Video: Thousands in Spain Gather at Church to get Their Pets Blessed; Know why
Kiara Advani and Sidharth Malhotra Hush-hush Royal Wedding in Jaisalmer? Check the date, venue and all the Buzz
Lambeth Council will repay 1,600 drivers it wrongly fined after admitting its road sign was unclear
Pathan Box Office Collection: SRK-Deepika Padukone and John Abraham starrer collects Rs 667 crore worldwide
Anand Pandit says the busy schedule of Big Bull is going on
Pakistan Blast: Peshawar Mosque Bomber who Killed Over 100 Wore Police Uniform; Cops Admit Security Lapse
Ranveer Singh, Alia Bhatt Starrer Rocky Aur Rani Ki Prem Kahani Pushed To July 28
Prosecutors subpoena dentist’s office for records of Leilani Simon accused of murdering her son
More pain for Brits as Bank of England is set to hike interest rates TODAY
Winter Storm Hits Texas, West Virginia, Several Other US States; Over 1,800 Flights Canceled
20 Rare Indian Baby Girl and Baby Boy Names Inspired by Love – Check Names and Exact Meanings
Twitter announces plans to start charging developers to access its application programming interface
Anjali Arora’s latest poignant video breaks the internet after MMS scandal – WATCH
ISIS bride Shamima Begum claims she met ISIS executioner Jihadi John
How Lamborghini-driving grifter conned dozens of investors out of $35m with fake weed business
Bank Of England Is Expected To Raise Rates Again
Australia to Replace Portrait of Queen Elizabeth II on its Banknote
Australia Is Removing The British Monarch From Its 5-Dollar Bill
Avatar: The Way of Water beat ‘The Avengers’ to become the 10th highest grosser of all time in the US.
Pamela Anderson is radiant at NYC party for her new Netflix doc Pamela, a Love Story
Rakhi Sawant cries uncontrollably saying ‘Marriage with Adil Khan is in danger’
Tunisha Sharma death case: Actor’s uncle demands inquiry into role of Sheesan’s relatives
US to Boost Military Role in the Philippines as Fears Over Taiwan Grow
Accountants say Trump might have as little as $30 million scattered across hundreds of bank accounts
Bernie Sanders labeled a hypocrite for charging $95 a ticket to attend event promoting his new book
Russian Diesel Is Europe’s New Embargo Target
Deepika Padukone wrote a happy birthday wish for sister Anisha
Tom Brady ‘filmed his retirement video days before his official announcement’…
Ex-Skid Row drug addict slams California’s politicians for not ‘incentivizing people to get sober’
LAX power outage stops TSA, causes potential flight delays
Ajay Devgan-Kajol’s daughter Nysa Devgan attends a party in a plunging neckline, her missing photo goes viral
NRL Nicho Hynes supports his mum at Gosford court as she faces charges for allegedly dealing heroin
US Drills Have Pushed Situation to ‘Extreme red-line’: North Korea Warns Biden; The White House Responds