The Smartest Investors Club
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

The Smartest Investors Club

Business

Microsoft confirms performance-based job cuts across departments

by January 10, 2025
January 10, 2025
Microsoft confirms performance-based job cuts across departments

Microsoft is cutting a small percentage of jobs across departments, based on performance, the company confirmed to CNBC on Wednesday.

“At Microsoft we focus on high-performance talent,” a Microsoft spokesperson said in an email to CNBC on Wednesday. “We are always working on helping people learn and grow. When people are not performing, we take the appropriate action.”

Business Insider reported on the plans late Tuesday.

The job cuts will affect less than 1% of employees, said a person familiar with the matter who asked not to be named in order to discuss private information.

Microsoft had 228,000 employees at the end of June. While the company’s net income margin of nearly 38% is close to its highest since the early 2000s, Microsoft’s stock underperformed its peers last year, rising 12% while the Nasdaq gained 29%.

Microsoft’s latest cuts are slim compared with recent downsizing efforts.

In early 2023, the company laid off 10,000 employees and consolidated leases. In January 2024, three months after completing the $75.4 billion Activision Blizzard acquisition, Microsoft’s gaming unit shed 1,900 jobs to reduce overlap.

As 2025 begins, Microsoft faces a more tenuous relationship with artificial intelligence startup OpenAI, which the company has backed to the tune of more than $13 billion. The partnership helped propel Microsoft’s market cap past $3 trillion last year.

Over the summer, Microsoft added OpenAI to its list of competitors. Microsoft CEO Satya Nadella used the phrase “cooperation tension” while discussing the relationship with investors Brad Gerstner and Bill Gurley on a podcast released last month.

Meanwhile, the Microsoft 365 Copilot assistant, which draws on OpenAI technology, has yet to become pervasive in business. Analysts at UBS said in a note last month that they came away from Microsoft’s Ignite conference with the impression that Copilot rollouts “have been a bit slow/underwhelming.”

Microsoft is still touting its growth opportunities. Finance chief Amy Hood said in October that revenue growth from Microsoft’s Azure cloud will speed up in the first half of this year because of greater AI infrastructure capacity.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Charbone Hydrogene resout la perturbation temporaire du service a la centrale hydroelectrique Wolf River et renforce le focus mis sur la production d’hydrogene vert
next post
QUIMBAYA GOLD TO ATTEND THE 2025 VANCOUVER RESOURCE INVESTOR CONFERENCE

You may also like

SEC charges Robinhood with securities violations; brokerage to...

Darden Restaurants sales disappoint as Olive Garden, LongHorn...

Dollar Tree says it’s winning over higher-income shoppers...

Warren Buffett’s Berkshire Hathaway sold nearly half its...

Doritos severs ties with transgender influencer in Spain...

Hurricane Milton could reduce Disney earnings, Goldman says

Here’s why banks don’t want the CFPB to...

Nvidia CEO Jensen Huang’s net worth swells from...

Disney wins the 2024 box office as year-end...

Trump Media auditor warns that losses threaten the...

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Trump claims ‘I don’t know her’ and ‘listened to’ RFK Jr about...

    • Rubio just got an additional job in Trump’s administration — and he’s not the only one wearing multiple hats

    • Sycamore Gap: Two men convicted of felling one of UK’s most famous trees

    • Putin, Xi and friendly world leaders celebrate Russia’s Victory Day at Moscow Parade

    • Ellen Miles is planting seeds of hope through guerrilla gardening

    Categories

    • Business (1,633)
    • Investing (4,791)
    • Politics (7,537)
    • World (6,128)
    • Terms & Conditions
    • Privacy Policy
    • About us

    Disclaimer: thesmartestinvestorsclub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 thesmartestinvestorsclub.com | All Rights Reserved


    Back To Top