Microsoft and Xiaomi plan massive layoffs in 2023

Major tech giant Microsoft is planning mass layoffs in 2023 due to declining revenues amid a slowdown in global economic growth. 10 thousand people (about 5% of the entire state) may fall under the reductions. Microsoft has 221,000 employees (data for 2022). Analysts do not exclude that the total number of employees who may fall under the cuts will exceed 10,000 people. Microsoft has not officially commented on this information. At the end of 2022, Microsoft shares fell by 30%.

Microsoft isn’t the only US tech giant to cut headcount as the global economy slows. Mass layoffs are also planned in other large US technology corporations. A similar situation is observed in China. For example, the Chinese technology company Xiaomi is also planning to carry out mass layoffs of employees due to low income in 2022. Up to 6,000 employees (up to 15% of the entire staff) can fall under Xiaomi cuts.

Xiaomi has reported a significant decline in revenue in 2022.

In the first quarter of 2022, Xiaomi’s net profit was 28.6 billion yuan (52.9% less than in the first quarter of 2021).

In the second quarter of 2022, Xiaomi’s net profit was 20.8 billion yuan (67.1% less than in the second quarter of 2021).

In the third quarter of 2022, Xiaomi’s net profit was 21.2 billion yuan (59.1% less than in the third quarter of 2021).