Microsoft confirms job cuts after calling for growth to slow

Satya Nadella, chairman and chief executive officer of Microsoft Corp., speaks during the virtual Meta Connect event in New York on Oct. 11, 2022.
Michael Nagle | Bloomberg | Getty Images

A Microsoft spokesperson on Monday confirmed that the company let go of additional workers as the software maker’s revenue is expected to slow, thanks to weaker sales of Windows licenses for PCs.

The move aligns with efforts at technology companies big and small to lower costs. Meta Platforms and Salesforce are among those in Silicon Valley that have slowed their pace of hiring this year, even as Coinbase, Netflix and others have resorted to layoffs.

“Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly,” a Microsoft spokesperson told CNBC. “We will continue to invest in our business and hire in key growth areas in the year ahead.”

Monday’s announcement comes three months after Microsoft said it trimmed less than 1% of employees.

In July, Microsoft called for about 10% revenue growth in the fiscal first quarter, slower than it’s been in more than five years. The company will be announcing earnings on Oct. 25.

Axios, which reported the layoffs earlier on Monday, said the cuts impacted fewer than 1,000 people and cited an unnamed person.

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