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Microsoft sacks nearly 1,000 workers, as firm’s market valuation drops



Bill Gates decries Nigeria's low domestic revenue

Almost 1,000 employees working with Microsoft have lost their jobs after the technology company’s revenue failed to meet or surpass analysts’ turnover projection.

Microsoft sacked the workers, who make up less than half of one per cent of the company’s 221,000 employees globally, almost four months after it revealed a plan to downsize in July.

The company, founded by Bill Gates, the fifth richest person in the world, had stated that less than one per cent of its workforce would be laid off ahead of projected recession for United States’ economy.

Explaining the situation that forced Microsoft to lay off staff, executives at the company said, “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.” The company’s representatives said, according to Daily Mail on Wednesday.

READ ALSO:Elon Musk clashes with Bill Gates over $500m Tesla investment

The sack affected various divisions at Microsoft, from Microsoft Strategic Missions and Technology organization to Xbox console gaming division.

Microsoft is battling with saving its earnings, considering the company was projected to generate $52.4 billion in the second quarter of this year, but it reported a turnover of $51.9 billion.

Gates’ company had significantly profited from the work-from-home model companies adopted during the COVID-19 lockdown, but since firms are back to office, demands for its products or services have dropped, with soaring inflation also playing a role in the decrease.

Demands for Microsoft share have also plummeted in the stock market, with the share of the firm falling by -29.36% in value year-to-date, from $336.32 per share to $236.48.

This indicates investors are snubbing Microsoft’s stock in the capital market, resulting to the company’s market valuation falling to $1.76 trillion as at October 19, 2022, from $2.53 trillion as of December 31, 2021.

Over $770 billion was wiped off its market value during the period of ten months.

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