In the face of the approaching economic recession, large technology companies have begun to implement staff reduction campaigns. Microsoft and Facebook are no exception to that common trend.



The recent increase in interest rates by the central bank in response to inflation has made money flow less interesting to technology stocks like Microsoft. Since the beginning of the year, the company's shares have fallen about 22%.

On July 12, the software giant announced plans to lay off about 1% of all employees in fiscal 2023, when the company usually announces structural changes. Data for June 2021 shows that Microsoft has about 181,000 employees. The 1% level will correspond to more than 1,000 people losing their jobs.

"Today, the company notified several employees that their roles have ended," a Microsoft spokesperson said. “This is the result of a strategic realignment. The company continues to invest in certain areas and plans to hire more next year.”

Earlier this week, research firm Gartner estimated that the PC business, which drives Microsoft's Windows business, fell 13% in the third quarter, marking its slowest growth in nine years.

Meanwhile, Facebook's parent company, Meta, announced it was canceling its contract with ABM Industries, the infrastructure provider and manager. Hundreds of employees at the company's headquarters in Silicon Valley will have to leave work at the end of this month.

Specifically, the cancellation of this contract directly affects 368 workers in departments such as: kitchen cleaners, night janitors, workers at recycling sorting machines and coffee shop support, as well as team supervisory and management team at headquarters.

The cuts come as Facebook's online advertising business is shrinking due to a variety of factors: soaring inflation, the war in Ukraine, and changes in Apple's iOS privacy policy. .

Last week, Mark Zuckerberg told employees the company plans to cut engineer contracts by at least 30% this year, and urged people to report cases of "low-productivity" workers. ".