Microsoft will now eliminate a lot of open job listings, including the ones in their Azure cloud business and its security software unit. This is because of the weakening economy, according to Fortune.

Hiring Freeze

The hiring freeze will continue indefinitely, and the company declined to comment further on which departments and businesses are impacted. However, Microsoft said that they are honoring job offers that have already been made for open roles and that they will make some exceptions for critical roles. 

Slowing Down

The hiring freeze is the expansion of the hiring slowdown that was announced in May that affected Windows, Office, and Teams groups. 

Microsoft also cuts less than one percent of its 180,000-person workforce, which has affected consulting and customer solutions. However, it said its plan is to finish the current fiscal year with an increase in employees.

Also Read: Microsoft Teams will add Outlook and 'Together Mode' features Soon

Other Tech Companies are Pulling Back

Microsoft isn't the only tech company that is pulling back from hiring new people. Google and Lyft are also two of the most recent companies that froze their hiring. 

Google is pausing hiring for the next weeks, while Lyft will shut down a division and will be trimming jobs. Additionally, Google's parent company, Alphabet, has been cutting down its recruiting efforts in which CEO Sundar Pichai told his staff that despite having added 10,000 employees in the second quarter, they will slow the pace of hiring for the rest of the year. Instead, they will prioritize engineering and technical talent. 

In April this year, Amazon said that it was overstaffed and is subleasing some warehouse space. It also has paused the development of facilities for office workers because the eCommerce giant said that they need more time to figure out the amount of space employees will need for their hybrid work.

Apple is also planning to slow hiring and spending at some divisions next year. This will help them cope with the possible economic slump. However, the company is still moving forward with its product release schedule this year. 

Companies Brace for a Potential Economic Slump

The tech industry is increasingly worried about the impact that the economic slowdown will have on the industry. As the economy continues to fluctuate, companies are going to have to make cuts with no more hiring.

The slowing economy might also lead to fewer people purchasing devices like smartphones and tablets. In other words, it is possible that online shopping will decrease. There are also fears that some companies might go bankrupt. 

There are also concerns about the effect that the shrinking of a tech sector's workforce will have. The question is whether it will affect the companies' ability to innovate or their ability to stay competitive.

Related Article: Windows 12 Coming in 2024? Reports Claim Microsoft Cancels Windows 11 Major Update for 2023

This article is owned by TechTimes

Written by April Fowell