The wonder 7 companies of the US appear to be feeling the heat, and as the biggest of them all, Microsoft has reportedly announced the decision to slash as many as 1000 jobs from across departments in the company. This comes barely a few months after its windfall of layoffs, which saw as many as 10,000 of its now former workers being shown the door.
Layoff To Affect Cloud Strength
The company, after a period of lull in the mid-2010s, under the leadership of CEO Satya Nadella, has reinvented its approach to its business, and cost-cutting, like for many trying to stabilise, is a means used by many to run their business.
Coming back to the layoffs, this particular tranche is expected to affect multiple departments, according to reports. According to reports from CNBC, these layoffs are largely going to affect employees working in the mixed reality division along with the Azure cloud section. It is also expected to placate the HoloLens 2 department.
It is interesting to note that Microsoft currently stands as the most valuable company in the world, with a total market capitalisation of USD 3.151 trillion, and is one of the three companies to cross the threshold of the USD 3 trillion mark.
The company also has a major investment in the OpenAI, that it technically does not own, but is reported have greater leverage than admitted. | File
Microsoft Reports 13% Jump In Revenue
In addition, in pursuance to its Q1 report, released for the first quarter of 2024, the company increased its revenue from by a mammoth USD 6.4 billion or 13 per cent. And this growth, according to the company itself, was driven by the expansion and progress of business in its cloud and Azure sections.
These developments come at a time when, like many others in the business, including Google and Meta, Microsoft is betting high on AI and is therefore anticipating that this investment will pay off in the near and distant future.
The company also has a major investment in the OpenAI, that it technically does not own, but is reported have greater leverage than admitted.
The company's shares have also jumped in the recent past. On Wednesday, Microsoft saw its shares jump 1.91 per cent or 7.94, to close at USD 424.01 per share. In fact, just in the past six months of trading, the value of the company's share has increased by 14.97 per cent.
