Microsoft cuts another 9,000 roles in latest jobs cull
It is understood the job losses will impact less than 4% of its total workforce.
A company spokesman said: 'We continue to implement organisational changes necessary to best position the company and teams for success in a dynamic marketplace.'
It marks the biggest jobs cull since early 2023 when the company cut 10,000 workers – almost 5% of its workforce at the time – amid a move in the wider tech sector to scale back expansion seen during the pandemic.
The latest cuts are thought to impact different teams and country operations as part of efforts to cut layers of management.
The company's gaming business is among areas where Microsoft will 'end or decrease work', according to an internal memo.
'To position gaming for enduring success and allow us to focus on strategic growth areas, we will end or decrease work in certain areas of the business and follow Microsoft's lead in removing layers of management to increase agility and effectiveness,' Phil Spencer, Microsoft's chief executive of gaming, said.
The cuts come after Microsoft axed around 6,000 roles in May and some 1,000 in January.
Microsoft employed 228,000 full-time workers as of last June, the last time it reported its annual headcount. About 55% were in the US.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
19 minutes ago
- Reuters
Litigation funders get a boost in budget bill drama, court wins
July 3 (Reuters) - (Billable Hours is Reuters' weekly report on lawyers and money. Please send tips or suggestions to opens new tab) The U.S. litigation funding industry is basking in a string of favorable developments this week, including a major legislative reprieve in Washington and courtroom victories for its most prominent player, Burford Capital. On Capitol Hill, the U.S. Senate's parliamentarian struck a hefty proposed tax on litigation financiers from the massive pending budget bill before Senate Republicans approved the legislation on Tuesday. The provision, championed by retiring Republican Senator Thom Tillis, would have initially imposed a 40.8% tax rate on all "qualified litigation proceeds" received by any third party through a litigation financing agreement. Senate parliamentarian Elizabeth MacDonough on Monday ruled the measure violated budget reconciliation rules, forcing Republicans to drop it from the final text. Democrats had objected to the proposed tax, Sen. Jeff Merkley, the ranking member on the Senate Budget committee, said in a statement last week. The move was praised by litigation funders and their backers, who warned the tax would chill investment and undermine access to justice. "The only thing this provision would have done is discourage investment in justice by burdening funders," said Paul Kong, executive director of the International Legal Finance Association, a trade group for the industry. The Senate bill, which nonpartisan analysts say will add $3.4 trillion to the nation's debt over the next decade, is now back before the House, which advanced the bill toward a final yes-or-no vote early on Thursday morning. Burford, meanwhile, is another step closer to collecting its massive share of a $16.1 billion court judgment against Argentina, after the South American country seized a majority stake in oil and gas company YPF in 2012. U.S. District Judge Loretta Preska on Monday ordered Argentina to give up its 51% stake in YPF to partially satisfy a $14.39 billion award to Petersen Energia Inversora and a $1.71 billion award to Eton Park Capital Management, both of whom were minority investors in YPF. Burford is poised to receive around 35% of Petersen's award and 82% of Eton Park's award, a spokesperson for the litigation-financing firm said. That comes out to a potential payday of more than $6 billion, not including interest, which Petersen and Eton Park said is accruing at more than $2.5 million a day. Argentina is appealing Preska's September 2023 decision to award the $16.1 billion to the investors. Burford also scored a litigation win in Chicago, where a judge ruled that a subsidiary of the company can retain control over one of its former clients' claims in a price-fixing lawsuit against leading turkey producers. Burford had acquired rights to the claims from food distributor Sysco. The turkey producers had argued it was against public policy to allow a Burford subsidiary to serve as the named plaintiff when it never bought products from the defendants. Burford CEO Christopher Bogart, whose company is the largest publicly traded litigation funder, with a $7.2 billion portfolio as of March 31, said the "basic recurring theme" of the week is that large institutions "have long enjoyed a structural advantage in the litigation system, and they're very unhappy about losing it." There are now more than 42 active funders managing a total of $16.1 billion in assets, litigation finance firm Westfleet Advisors said in an annual report in March. The funding industry still faces regulatory headwinds. Business groups have pushed for mandatory disclosures of litigation funding agreements, arguing litigants require greater transparency about the interests that may be guiding settlements and other courtroom tactics. Indiana, Louisiana and West Virginia have enacted laws regulating litigation financing in recent years. In Washington, Republican U.S. Rep. Darrell Issa earlier this year introduced legislation that would require civil litigants to disclose any litigation funding agreements. Issa's bill is backed by the U.S. Chamber of Commerce's Institute for Legal Reform, whose president in February said the legislation "will help protect the integrity of our judicial system by ensuring that outside financiers are not secretly directing or profiting from litigation they are funding." The International Legal Finance Association opposes the bill, arguing it would hurt small businesses and erect a "financial barrier to entry to civil litigation." -- Litigator Roberta Kaplan is giving the New York Metropolitan Transportation Authority and the Triborough Bridge and Tunnel Authority a discount on her customary $2,000 hourly rate as she helps them defend New York's congestion pricing program, according to a contract obtained by Reuters. Kaplan, co-founder of the small law firm Kaplan Martin, is billing at $1,450 an hour, a 27.5% discount from her normal hourly fee, the contract records showed. It's common for lawyers to reduce rates for government clients. Kaplan's firm declined to comment. Kaplan, who represented writer E. Jean Carroll in defamation lawsuits against Trump, formed Kaplan Martin last year with Tim Martin, Steven Cohen and Mitra Hormozi. The congestion pricing program, which the Trump administration has moved to kill, generated $48.6 million in revenue for New York City in its first month, MTA said in February. -- Legal technology company Clio on Monday said that it has agreed to acquire legal AI and research company vLex in a deal valued at $1 billion. British private equity firm Oakley Capital agreed to sell Barcelona-founded vLex to Clio, a Vancouver, Canada-based company that said the deal marks a 'new era for AI-powered legal technology.' Clio, founded in 2008, offers a platform for law firms to manage clients and cases and process payments, among other capabilities. The company last July raised $900 million at a $3 billion valuation. In other recent legal tech news, AI company Harvey said last week that it raised $300 million at a $5 billion valuation. Read more: How much does Hunter Biden's lawyer charge? Litigation funder fires back at Tyson Foods over settlement interference claims Oregon contract shows law firms' stake in Coinbase securities fight
Daily Mail
32 minutes ago
- Daily Mail
The 60 Minutes star who wept after CBS settled Trump lawsuit for $16m
The 60 Minutes correspondent whose interview with Kamala Harris sparked a high-profile lawsuit from President Donald Trump had tears in his eyes while addressing colleagues at a meeting following news of the company's decision to settle the case for $16million. During a Wednesday morning meeting with 60 Minutes staff, Bill Whitaker, 73, appeared 'teary-eyed as he spoke about the institution he loves,' Status reported. The meeting, with with CBS News President Tom Cibrowski and interim Executive Producer Tanya Simon, occurred just hours after parent company Paramount agreed to the multimillion-dollar settlement. Trump's lawsuit, seen by many experts as frivolous and sure to fail, claimed that Whittaker's October 2024 interview with Harris ahead of the presidential election was deceptively edited. Whittaker, described as 'quite somber' at Wednesday's meeting, was joined by fellow 60 Minutes correspondents Lesley Stahl and Sharyn Alfonsi in addressing the 'dispirited staff.' The pair expressed 'deep frustration and dismay' at the decision to settle a suit 'widely regarded across the legal community as absurd,' Status reported. The settlement was seen as necessary to complete Paramount's proposed $8billion media merger with Skydance, which requires approval by the Trump administration. Paramount brass had reportedly worried that any large settlement could be considered a bribe. Whittaker was the one to preside over the Kamala Harris segment at the center of the just-settled lawsuit brought by Donald Trump At another meeting the same day, Paramount co-CEO George Cheeks defended the settlement. 'Look, companies often settle litigation to avoid the high and somewhat unpredictable cost of legal defense, the risk of an adverse judgment that could result in significant financial as well as reputational damage and the disruption to business operations that prolonged legal battles can cause,' he said, speaking to investors at Paramount's annual shareholder meeting. Cheeks also noted that the settlement did not include an apology to Trump, something the president had previously demanded. At the gathering with 60 Minutes staff, Cibrowski and Simon vowed to protect the show's editorial independence going forward. 'The concern is what happens next,' one 60 Minutes staffer told Status, of the prospect of shakeups at the network following the merger. 'Is this it? Or [does Skydance] say we are going to bring a new person in and start tinkering around with this show.' 'The institution could unravel,' the employee warned.
Reuters
33 minutes ago
- Reuters
Nike, other retailer stocks rise on Trump's trade deal with Vietnam to reduce tariffs
July 2 (Reuters) - Shares of Nike and other apparel makers rose on Wednesday after U.S. President Donald Trump said he had struck a trade deal with Vietnam that would impose a lower than initially expected tariff rate on many imports from the Southeast Asian country. After months of negotiations, Trump's trade deal with Vietnam includes a 20% tariff on imports from Vietnam, lower than an initial 46% rate he had announced in April. Apparel makers have been diversifying production out of China to Vietnam, Cambodia and Indonesia, as Trump's reciprocal tariffs on imports from these countries proposed in April raised concerns over supply chain costs as well as higher product prices. Trump's on-again, off-again tariff policy has also forced companies to withdraw or cut their financial targets, and analysts believe some clarity on the issue would allow companies to chalk out their strategy for the year. "The tariff dance has clearly been a dominant focus point for retailers and investors, with its uncertainty perhaps creating greater problems than its actual severity," BMO Capital Markets analyst Simeon Siegel said. The deal also includes a 40% levy on trans-shipments from third countries, and Vietnam would provide the U.S. with more market access, with no tariffs on U.S. exports into Vietnam, Trump said in a post on Truth Social. Nike's (NKE.N), opens new tab shares were up 4%, Under Armour (UAA.N), opens new tab rose 2%, and Levi Strauss (LEVI.N), opens new tab gained nearly 2%. Shares in Abercrombie & Fitch (ANF.N), opens new tab were up less than 1%, while Roger Federer-backed On Holding stock was up 3%. "Investors may be looking at this as a sign that many of the threatened tariffs (on Vietnam and other countries) will be rescinded," Morningstar Research analyst David Swartz said. Still, Vietnam accounted for over half of all athletic footwear imports by volume and value in 2024 and Trump's agreement with the Southeast Asian country would hit the footwear industry hard, said Matt Priest, CEO of trade group Footwear Distributors and Retailers of America. "Many of these shoes already carry a 20% tariff, particularly popular athletic styles. Piling new tariffs on top of that isn't just unnecessary — it's bad economics. The administration should acknowledge the steep footwear duties already in place and avoid adding more strain to American families and businesses," Priest said. Shares of electronics retailer Best Buy (BBY.N), opens new tab were up marginally. The company had factored in Trump's base tariff rate of 10% in its annual forecast in May. "The transshipping aspect is an important wrinkle, but I'd expect suppliers will quickly move to adjust supply chains to avoid paying that hefty duty," said Matthew McCartney, analyst at Wedbush Securities. "Bigger picture, this deal brings clarity to the industry for a critical consumer electronics hub and eliminates some downside risk to Best Buy's outlook." The companies — including Nike, Adidas, Puma and Levi — did not immediately respond to a Reuters request for comment.
