Microsoft cuts a thousand jobs while waiting for better days

The brake on risk taking, caused in particular by the rise in interest rates in the United States, continues to shake the tech giants. Microsoft, the world’s third capitalization at more than 1.7 trillion dollars, had to shed a thousand employees in several of its divisions this week, according to the American site. Axios Tuesday, citing a source. These dismissals concern less than 1% of the total workforce of Microsoft.

It prevents. The group, which employed around 221,000 people as of June 30, is a victim of the decline in investor interest in tech stocks but also of the energy crisis raging in Europe. Just like Microsoft, other Internet and IT giants, such as Google, Meta, Snap, or Twitter tend, at the very least, to freeze their recruitments or even cut them, while waiting for better days.

Incidentally, Microsoft said in July that a small number of positions had been cut but that it would increase its workforce again thereafter.

Spending to innovate on uses

In reality, these technology giants are looking for a new breath of innovation. In fact, Meta (Facebook) struggles to convince on the uses of its metaverse but also smartphone manufacturers who struggle to differentiate themselves. However, these innovations mobilize colossal capital, like Facebook, which has invested 10 billion dollars for the development of its virtual world. He is also thinking with Microsoft to create bridges with his Teams tools to allow users to use avatars in collaborative meetings. So much innovation spending that should quickly reassure investors.

Also, Microsoft, like tech companies, in a context of global tensions, must spend more and more to protect themselves against cyber-attacks.

Finally, the strong dollar is tending to cut into the profits of the group, which this year experienced its weakest quarterly growth in two years due to the slowdown in its historical activity.

(with Reuters)

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