Microsoft is reducing the number of new hires for its Windows, Office and Teams department. The tech giant prepares for an uncertain year.
A Microsoft spokesperson told Bloomberg that the organization is introducing a new policy for applicants in the Windows, Office and Teams department. New applicants can only be hired with the approval of Rajesh Jha, Executive Vice President at Microsoft. As a result, the tech giant is hiring fewer people.
Why?
The organization noted that caution is typical in periods of economic volatility. The statement refers to the past quarter. Apple lost $200 billion in value. Amazon made its first loss since 2015 and Alphabet’s figures disappointed as well.
Microsoft performed well, but the coming quarters are uncertain. COVID-19 had a positive impact on the demand for software and hardware. Now the pandemic is waning, and demand is waning with it. Apple was one of the many organizations that posted worrying quarterly figures. Investors not only lost confidence in Apple, but the entire market.
Microsoft sees a risk. COVID-19’s decline isn’t the only problem. Tensions between the US and China pressure the device supply chain. Hardware manufacturers are struggling with uncertainty, including Nvidia. The organization expects a loss of $500 million in the remaining quarter. Resultingly, Nvidia is hitting the brakes as well. Last week, CFO Colette Kress told analysts that the organization will be hiring fewer people in the coming period.
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