This is about 4% of employees at Microsoft with particularly large cuts in the XBox division.
This is one of the largest companies in the world and is undoubtedly trying to deploy more AI. It’s impossible to say that technology changes are behind this but it’s a big change from 2021 when no one could find enough employees.
Three points:
- This is hitting on the same day as a poor ADP number which will get the market’s attention
- A huge company like MSFT laying off workers is a green light for others to trim as well
- Tech companies have an incredible opportunity to boost margins by thinning out staffing while revenues remain sticky
Shares of Microsoft are down 0.5% in the pre-market.
This article was written by Adam Button at www.forexlive.com.
