Microsoft will now eliminate many open job postings, including those in its Azure cloud business and security software unit. This is because of the weakening economy, according to Fortune.
(Photo: FABRICE COFFRINI/AFP via Getty Images)
A photo taken on May 23, 2022 shows Microsoft’s logo during the annual meeting of the World Economic Forum (WEF) in Davos.
The hiring freeze will continue indefinitely and the company declined to comment further on the departments and companies affected. However, Microsoft said it honors job offers already made for open roles and will make some exceptions for critical roles.
To slow down
The hiring freeze is an extension of the hiring slowdown that was announced in May and affected Windows, Office, and Teams groups.
Microsoft is also cutting less than one percent of its workforce of 180,000 people, which has affected consulting and customer solutions. However, he said his plan is to end the current fiscal year with an increase in staff.
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Other tech companies are pulling out
Microsoft isn’t the only tech company giving up on hiring new people. Google and Lyft are also two of the most recent companies to freeze hiring.
Google is suspending hiring for the next few weeks, while Lyft will close a division and cut jobs. Additionally, Google’s parent company Alphabet has scaled back its recruiting efforts in which CEO Sundar Pichai told staff that despite adding 10,000 employees in the second quarter, they would slow the pace of hiring for the company. rest of the year. Instead, they will prioritize engineering and technical talent.
In April of this year, Amazon said it was overstaffed and subletting warehouse space. It also suspended development of facilities for office workers, as the e-commerce giant said it needed more time to determine how much space employees will need for their hybrid work.
Apple also plans to slow hiring and spending in some divisions next year. This will help them cope with the possible economic crisis. However, the company is still moving forward with its product launch schedule this year.
Businesses brace for potential economic meltdown
The tech industry is increasingly concerned about the impact the economic downturn will have on the industry. As the economy continues to fluctuate, businesses will have to make cuts without hiring more.
The slowing economy could also lead to fewer people buying devices like smartphones and tablets. In other words, online shopping may decline. There are also fears that some companies will go bankrupt.
There are also concerns about the effect of reducing the workforce of a technology sector. The question is whether this will affect companies’ ability to innovate or their ability to remain competitive.
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Written by April Fowell
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