Satya Nadella, chief executive officer of Microsoft Corp., appears at a panel session at the World Economic Forum in Davos, Switzerland, on May 24, 2022.
Hollie Adams | Bloomberg | beautiful pictures
Microsoft said it would slow down the pace of hiring new employees under current economic conditions, following similar announcements from its technology partners.
A Microsoft spokesperson told CNBC in an email on Wednesday: “As Microsoft gets ready for the new financial year, they are ensuring the right resources are tailored to the right opportunities.” “Microsoft will continue to increase headcount over the next year, and we will focus additionally on those resources.”
Microsoft shares fell 1% in extended trading following an initial report from Bloombergsaid the software company had removed the job listing.
Alphabet, Meta and reported Apple committed to slow the pace of new hires. That follows years of expansion as investors reward revenue growth and increased market share. With inflation at a four-decade high and fears of an impending recession, companies are becoming more cautious.
While Microsoft sells software to corporations, schools, and governments, parts of the business may experience more downturns. Those areas include LinkedIn, the Xbox gaming unit, and advertising.
In March, Rajesh Jha, executive director of productivity software Office and part of the Windows operating system, tell his organization cautious about opening new roles and get permission from his leadership team ahead of time. Earlier this month, Microsoft cut a small percentage employees in different groups.
In June, Microsoft lower estimates of its quarterly earnings and sales, an adjustment the company says is related to changes in exchange rates. Microsoft reports fiscal Q4 earnings on July 26.
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