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Microsoft Is Cutting Jobs As the New Fiscal Year Starts

  • Microsoft said it had cut jobs across geographies and departments on Thursday, as it began a new fiscal year on July 1.
  • The US tech giant declined to elaborate on the removed positions, their numbers, or locations.
  • Last month, the company said it would close its retail stores and take a US$450 million related pre-tax asset impairment charge amid the pandemic. A spokesperson said it is normal for the company to reassess its business when it begins a new fiscal year.
  • Visit The Financial Today’s homepage for more stories.

Bengaluru • Microsoft said it had cut jobs across geographies and departments on Thursday, as it began a new fiscal year on July 1.

The US tech giant declined to elaborate on the removed positions, their numbers, or locations.

Business Insider reported this week that the company is cutting under 1,000 jobs across the company. According to the report, Microsoft cut positions at its online news site MSN.com, as it moved to an AI-powered algorithmic feed, adding that jobs were also cut in the cloud division of Microsoft Azure.

Last month, the company said it would close its retail stores and take a US$450 million related pre-tax asset impairment charge amid the pandemic. A spokesperson said it is normal for the company to reassess its business when it begins a new fiscal year.

In 2017, the company cut thousands of jobs while undertaking a reorganization that affected its sales and marketing teams.

Late in April, Microsoft’s third-quarter results exceeded revenue and profit estimates of Wall Street, boosted by high demand for its Teams chat and online meeting software and Xbox gaming services, as the world moved from home due to the pandemic.

Microsoft’s revenue rose 15 percent in the third quarter to US$35.02 billion, while net profit increased to US$10.75 billion, or US$ 1.40 per share.

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