Microsoft is making more cuts to its workforce.
The company is slashing 158 jobs in Washington state, where it is headquartered, according to a new filing with the state Employment Security Department (ESD).
The layoffs are not part of the 10,000 global layoffs announced by Microsoft on Jan. 18.
“Organizational and workforce adjustments are a necessary and regular part of managing our business,” a Microsoft spokesperson said in a statement. “We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners.”
The company declined to provide details about additional cuts beyond Washington state, or which areas of the company were affected.
More than 2,700 Seattle-area workers were affected by the layoffs announced in January. The company said originally that those layoffs would be made between January and the end of March, the end of the company’s fiscal third quarter.
Microsoft is one of numerous tech companies to make layoffs in recent months, including Facebook parent Meta, Amazon, and Salesforce, and many startups.
Microsoft is navigating various macroeconomic headwinds, including a pullback in business technology budgets and more cautious customer spending for cloud services and software licenses that drive the bulk of its business.
The company told employees Wednesday it is not raising salaries this year, citing a “dynamic economic environment.”
Microsoft had 221,000 employees as of June 30 (when it last reported headcount), an increase of 40,000 people or 22% from the same point the prior year. It was the largest annual increase in employment in Microsoft’s history, based on data tracked by GeekWire.
Microsoft last month reported revenue of $52.9 billion for its fiscal third quarter, a 7% increase from last year. The company beat analyst expectations of $51 billion. Profits came in at $18.3 billion, up 9%.
The 7% revenue increase represents the second straight quarter of single-digit growth. It’s a far cry from 18 months ago, when Microsoft’s year-over-year revenue growth peaked at more than 20% as the company and broader tech economy emerged from the pandemic with a head of steam.
Microsoft stock is up 29% this year, and up 15% over the past 12 months. The company ended its fiscal third quarter with $104.4 billion in cash, cash equivalents, and short-term investments.
