Microsoft is lowering hiring fees for its Windows, Office, and Teams chat and conferencing software groups.
The company is apparently readjusting staffing needs in reaction to a global economy that has been hit by rising prices, supply chain problems and fallout from the war in Ukraine. The move was first reported by Bloomberg.
“As Microsoft prepares for the new fiscal year, it is ensuring that the right resources are aligned with the right opportunity. Microsoft will continue to increase its headcount in the coming year and add additional focus on where those resources go,” the company said. he said in a statement.
Microsoft stock prices have dipped so far this year, from around $337 a share in early January to around $265 a share today, according to Markets Insider. (Financial markets in general have also fallen during the year).
Microsoft is not alone. A handful of other big-name tech companies have acknowledged similar moves in hiring; the latest are Salesforce and graphics card and software maker Nvidia, which during its earnings call on Wednesday said: “We are slowing down for now to integrate these new employees and to focus our budget on taking care of existing employees while inflation persists.” “.
Other companies that announced hiring slowdowns include Lyft, Snap, Uber, Meta, Salesforce and Coinbase; all have made similar moves amid falling stock prices, according to Protocol.
The staffing problems at Microsoft and a handful of other companies don’t necessarily reflect the larger tech job market as a whole. The number of job openings peaked at 11.5 million at the end of March, according to the US Bureau of Labor Statistics (BLS). Meanwhile, in each of the last six months, more than 4 million people have quit their jobs, according to the agency.
In technology, the talent shortage is much worse than in most other industries. While the US unemployment rate hovers around 3.6%, for the tech industry it is 2%, according to CompTIA, a nonprofit association for the IT industry and workforce.
That has prompted US employers to step up their search for workers and review the qualifications (such as a four-year college degree) they require.
At Microsoft, meanwhile, all new hires must be approved by Executive Vice President Rajesh Jha and his leadership team, according to Bloomberg.
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