- Microsoft Corp MSFT asked teams across the company to rein in some employee expenses, the Wall Street Journal reports. Managers have told staff regarding various cutbacks to the company's budget.
- Microsoft also targeted some spending on business travel, outside training, and company gatherings. At a recent picnic for one Microsoft team, managers paid for their employees' food and drinks instead of billing the company, writes WSJ.
- Also Read: Microsoft Joins Peers In Hiring Slowdown Amid Economic Volatility
- Microsoft's other cost-cutting initiatives included a hiring freeze in some parts of the company and a plan to lay off less than 1% of its workforce of about 181,000 employees.
- Microsoft this week laid off some employees in its Modern Life Experiences group, which helps develop software products for consumers. Last month, Microsoft told employees to keep an eye on expenses and think twice before submitting them.
- Microsoft updated its Q4 and FY23 guidance in June to reflect the recent unfavorable currency headwinds. Microsoft reported fourth-quarter revenue of $51.9 billion, up 12% year-over-year, missing the consensus of $52.47 billion. EPS of $2.23 missed the consensus of $2.30.
- Companies across the tech sector strived to control costs to beat inflation, economic-growth concerns, and a slowdown in advertising spending.
- Last week, Oracle Corp ORCL began laying off hundreds of employees, signaling a pullback in customer analytics and advertising services. Meta Platforms Inc META Facebook employees feared significant job cuts.
- Price Action: MSFT shares traded higher by 0.14% at $282.70 in the premarket on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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