Microsoft said Tuesday it cut a small number of workers, days after the software maker began its 2023 fiscal year, a time when the company normally announces structural changes.
Technology companies big and small have slowed hiring plans or announced reductions in the workforce in recent months to withstand a possible economic recession, which central bankers have been trying to ward off by raising interest rates. That shift has made investors less interested in growth-oriented stocks such as Microsoft, whose shares have declined about 22% since the start of the year, while the larger S&P 500 index is down 19% over the same period.
The cuts reach a variety of groups and affect less than 1% of the company, which employed 181,000 people as of June 2021, the company said.
The Microsoft executive in charge of Office productivity software, Rajesh Jha, in May told his team to obtain permission before opening new roles. In June, Microsoft slashed its income and revenue guidance, citing unfavorable foreign-exchange rates.