Microsoft Corp. and Amazon.com Inc will cut a total of 28,000 jobs
Yes, it’s alarming since 28,000 people would soon lose their job
Actually it’s not just 28,000 because these 28,000 people may also have their family members who would also be affected too. In other words, this may potentially affect another 28,000 other people indirectly too. Before we become too affected, we should also know if these two companies are actually facing any financial issues at the moment.
In the most recent result for Microsoft based on its Q1, below are their results:
- Earnings: $2.35 per share, vs. $2.30 per share as expected by analysts, according to Refinitiv.
- Revenue: $50.12 billion, vs. $49.61 billion as expected by analysts, according to Refinitiv.
In fact, the guidance for its Q2 is slightly higher than Q1. Do read the full report here: cnbc.com
Meanwhile, results for Amazon is as follows: (based on its latest quarter)
Here are the key numbers:
- Earnings: 28 cents per share
- Revenue: $127.10 billion vs. $127.46 billion, according to Refinitiv estimates
The guidance for the next quarter is slightly lower. Do read the full report here: cnbc.com
Here’s that article for your reference about their plans.
Article in themalaysianreserve.com MICROSOFT Corp. and Amazon.com Inc., two of the world’s biggest companies, began cutting a total of 28,000 jobs on Wednesday in a post-pandemic reckoning that has left almost no tech name unscathed.
The software giant began notifying some of the 10,000 workers that will lose their jobs this quarter, while its Seattle-based neighbor and cloud rival Amazon started sending out emails to people in the US, Canada and Costa Rica who are among 18,000 people whose positions will be eliminated.
Both companies said the painful measures were necessary to offset slowing sales and a possible recession that has made customers more cautious. The tech industry benefitted during the pandemic from a surge in demand for computers, phones, software and goods ordered online, leading to a frenetic pace of hiring. Please do refer here for the full report. Article in themalaysianreserve.com
Both Microsoft and Amazon are NOT losing money yeah
We can see from the results that both these companies are not cutting people because they are losing money. They are cutting people because they are preparing for slower times ahead. It does not mean the slow times will continue forever. It’s just a cycle which they must be prepared for. Perhaps hiring too many in expectations of the near future could have caused it. Perhaps the US economy just was not growing as much as what everyone expected. It could be any reason but the point here is a clear one.
Both are NOT trying to survive. They are both looking to preserve their results. Both are public listed companies and they also have their shareholders too. It’s either they do not do well in the future and all the shareholders suffer or they make a hard decision now. Both are tough decisions but just remember again that they are a public listed company.
Happy understanding and happy investing into companies which is progressive looking too. At the same time, for employees, please do not spend money as if the company will always be there to pay us the salary every end of month. Sometimes, things are not so rosy.
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