Microsoft, Amazon To Lay Off Thousands Due To Possible Recession
Microsoft, Amazon To Lay Off Thousands Due To Possible Recession
The first month of 2023 has been rocky for the tech industry to say the least, and unfortunately, it seems that the situation is not getting any better. Many corporations are in the midst of conducting mass layoffs, with tech giants such as Microsoft and Amazon facing tough decisions ahead.
Microsoft has announced that it plans to lay off as much as 5% of its workforce, with chief executive Satya Nadella sharing with Reuters that the company is exercising caution during these tough economic times. "Some parts of the world are in a recession and other parts are anticipating one," he said. Microsoft had 221,000 full-time employees by the end of June 2022, which was a 22% increase in staff from the year before. Now, such growth will be counteracted by a substantial drop in staffing that is to be expected this year.
Amazon continues to hold the top spot for the most lay-offs yet at 18,000. Doug Herrington, the chief of retail, wrote in a memo this week explaining that expansions during the Covid era were one of the main reasons for the current setbacks.
Wikipedia
“During Covid, our first priority was scaling to meet the needs of our customers while ensuring the safety of our employees. I’m incredibly proud of this team’s work during this period,” he said. “Although other companies might have balked at the short-term economics, we prioritized investing for customers and employees during these unprecedented times.”
So far this year, both companies have let go of a combined 28,000 employees, and that number is still expected to grow. Given the current trend, it's possible that such a number could surpass that seen in November 2022, when the tech industry saw upwards of 50,000 layoffs due to the ongoing economic downturn.
According to various reports, Microsoft, Amazon, and their contemporaries have resorted to layoffs due to unstable macroeconomic conditions and the possibility of a future recession.
Sources: 1, 2, 3
READ MORE
Sending money through a banking app is supposed to be quick and painless—tap a few buttons, and you’re done. But all it takes is one wrong email, one outdated contact, or one rushed moment, and suddenly your money ends up with the wrong person. It’s a pretty awful realization. The upside? It’s not always a lost cause—but you do need to act fast and know what you’re dealing with.
At first, it’s just a small crack in your driveway. Nothing major...until it spreads. You bring it up, expecting your neighbor to take some responsibility, but they brush it off and say it’s not their problem. So what can you do now? In a lot of cases, your neighbor might not be fully responsible, but that doesn’t mean you’re stuck with no solutions.
You open a bank account, leave your money there, and expect the bank to be happy about it. Then a fee shows up because you did not use the account enough, and suddenly it feels like you are being punished for doing nothing at all. As frustrating as it sounds, banks can often charge inactivity or dormancy-related fees if their account agreement clearly allows it.
My brother spends $50 on game parlays every Sunday—should I worry? Here is how to tell whether a small weekly betting habit is harmless fun or a sign of a bigger gambling problem, plus how to bring it up without starting a fight.
A shocking medical misdiagnosis led one person to sell everything after being told they had a terminal illness. Here’s what to do next, from legal options to rebuilding your finances and starting over.
At first, it seems like a small annoyance. Your neighbor’s dog wanders into your yard, digs a few holes, and leaves. But then it keeps happening and suddenly you’re dealing with real damage and real costs. When you bring it up, your neighbor shrugs it off and says the dog is harmless. That doesn’t really help when you’re the one fixing your garden. Luckily, you don’t have to just accept it, and there are ways to both recover your losses and stop it from continuing.
Disclaimer
The information on MoneyMade.com is intended to support financial literacy and should not be considered tax or legal advice. It is not meant to serve as a forecast, research report, or investment recommendation, nor should it be taken as an offer or solicitation to buy or sell any securities or adopt any particular investment strategy. All financial, tax, and legal decisions should be made with the help of a qualified professional. We do not guarantee the accuracy, timeliness, or outcomes associated with the use of this content.
Dear reader,
It’s true what they say: money makes the world go round. In order to succeed in this life, you need to have a good grasp of key financial concepts. That’s where Moneymade comes in. Our mission is to provide you with the best financial advice and information to help you navigate this ever-changing world. Sometimes, generating wealth just requires common sense. Don’t max out your credit card if you can’t afford the interest payments. Don’t overspend on Christmas shopping. When ordering gifts on Amazon, make sure you factor in taxes and shipping costs. If you need a new car, consider a model that’s easy to repair instead of an expensive BMW or Mercedes. Sometimes you dream vacation to Hawaii or the Bahamas just isn’t in the budget, but there may be more affordable all-inclusive hotels if you know where to look.
Looking for a new home? Make sure you get a mortgage rate that works for you. That means understanding the difference between fixed and variable interest rates. Whether you’re looking to learn how to make money, save money, or invest your money, our well-researched and insightful content will set you on the path to financial success. Passionate about mortgage rates, real estate, investing, saving, or anything money-related? Looking to learn how to generate wealth? Improve your life today with Moneymade. If you have any feedback for the MoneyMade team, please reach out to [email protected]. Thanks for your help!
Warmest regards,
The Moneymade team
