The Clap
Microsoft (NASDAQ:MSFT) will lay off 10,000 employees over the next two months in preparation for slower revenue growth.
What
In addition to slower revenue growth, Microsoft has been charged $1.2bn due to an issue related to leasing consolidation and other activities which will drop the company’s EPS by 12 cents.
As prices continue to rise, consumer spending habits are changing, with consumers opting to become more cautious when spending on technology.
So What
The company is expecting revenue growth of 2% in the fiscal Q2, the slowest growth rate since 2016. Investors are growing concerned over whether tech companies will be able to adapt to periods of slower growth.
Now What
The layoffs will impact just under 5% of Microsoft’s global workforce.
