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Microsoft expects a big slowdown in revenue growth for its fiscal first quarter.
October 19, 2022
Microsoft is said to be initiating more layoffs, cutting close to 1,000 workers this week. This comes as the software giant expects its fiscal first-quarter revenue growth to slow.
According to Axios, Microsoft announced layoffs across multiple divisions on Monday. It declined to say how many jobs it cut, but a source said the layoffs numbered under 1,000.
The latest Microsoft layoffs occurred across a variety of levels, teams and parts of the world.
Microsoft sent us the following statement:
“Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly. We will continue to invest in our business and hire in key growth areas in the year ahead.”
Keep up with our telecom-IT layoff tracker to see which companies are cutting jobs and the ensuing channel impact.
In July, Microsoft called for about 10% revenue growth in its fiscal first quarter. That’s slower than it’s been in more than five years, according to CNBC. The software giant will announced its latest earnings on Oct. 25.
In its fiscal fourth-quarter results, Microsoft reported commercial bookings grew 25% and enterprise services grew by 5%. Total revenue ticked up from $46.2 billion a year ago to $51.9 billion year-over-year, setting a record for Microsoft. However, that number missed the analyst forecast of $52.4 billion.
This summer, Microsoft followed the closing of its fiscal year with job cuts impacting less than 1% of its 180,000-person workforce. However, it planned to hire more workers in the months ahead.
Those cuts impacted a variety of groups including consulting, and customer and partner solutions, and were dispersed across geographies.
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