The tech sector is facing a period of belt-tightening as industry leaders Alphabet (GOOGL: NSD) and Microsoft (MSFT: NSD) continue to shed employees. These job cuts come amidst a backdrop of rising inflation and a global economic slowdown, forcing companies to re-evaluate their workforces and prioritize core business areas.
Google Cuts Cloud Unit Jobs:
According to a recent CNBC report, Google has laid off at least 100 employees from various teams within its cloud computing division, Google Cloud Platform (GCP). This move suggests a potential strategic shift within Google as the company focuses resources on its most profitable sectors.
Microsoft Streamlines Operations:
Microsoft has also implemented job reductions across several departments, including its Azure cloud unit and the HoloLens mixed-reality division. While the exact number remains unclear, estimates suggest a total of around 1,000 positions might be affected.
Bottom Line:
As economic conditions remain volatile, further layoffs from major tech companies cannot be ruled out. The coming months will likely reveal the full extent of the tech industry’s workforce adjustments.
