Microsoft is backtracking on its quota for Windows, Office and team chat and conferencing software groups.
The company is apparently re-adjusting its stuffing demand in response to the global economy, which has been hit hard by rising prices, supply chain problems and the effects of the war in Ukraine. The move was first reported by Bloomberg.
“As Microsoft prepares for the new fiscal year, it is making sure that the right resources are tied to the right opportunities. Microsoft will continue to grow key figures in the coming year and add additional focus to where those resources go,” the company said in a statement.
According to Markets Insider, Microsoft’s share price has fallen so far this year, from around 7 337 per share in early January to about 5 265 per share today. (Overall, the financial market is down for the year as well.)
Microsoft is not alone. A handful of other big-name technology companies have taken similar steps in hiring – the latest being Salesforce and software and graphics card maker Nvidia, which said during its earnings call on Wednesday: Focus on our budget. “
Lyft, Snap, Uber, Meta, Salesforce, and Coinbase – other companies have taken similar steps to reduce share prices, according to the protocol, to announce slowdown in hiring.
Stuffing issues at Microsoft and a handful of other companies do not reflect the larger tech job market as a whole. According to the US Bureau of Labor Statistics (BLS), the highest number of job openings at the end of March was 11.5 million. Meanwhile, more than 4 million people have quit their jobs in the last six months, according to the agency.
In technology, talent deficit is much worse than in other industries. According to CompTIA, a non-profit organization for the IT industry and the workforce, the U.S. unemployment rate is about 3.6%, compared to 2% for the technology industry.
This has prompted employers across the United States to increase their search for employees – and to revisit the qualifications they need (such as a four-year college degree).
Meanwhile, according to Bloomberg, all new appointments at Microsoft must be approved by Executive Vice President Rajesh Jha and his leadership team.
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