BackEx-Microsoft HR lists 3 types of employees at most risk of layoffs. Read here
The three catogories who are at the most risk of it are contract worker, employees associated with new initiatives and employees associated with event planning.
PremiumFormer Microsoft executive has listed three categories of employees that are at the risk of layoffs. This comes after tech giant Microsoft on January 18 announced that it will axe 10,000 employees, almost 5% of its workforce, by the end of third quarter of fiscal 2023 over poor economy.
Former Microsoft vice-president of human resources Chris Williams, who is now a podcaster, consultant and TikTok creator told Business Insider that the three catogories who are at the most risk of it are contract worker, employees associated with new initiatives and employees associated with event planning.
"Every industry, company, even department has a different risk, but some areas are more vulnerable than others," he said.
He said that one of the main reasons why companies use contract workers is for contingency.
"At the extreme end of the risk spectrum are contract employees. One of the main reasons companies use temporary or contract workers is for this very contingency. They want to remain flexible in case of a downturn," Williams told Business Insider.
He said that employees associated with new initiatives are hired when firms explore new avenues.
"When companies decide to explore new avenues during a good phase, they tend to hire employees for these new initiatives. Such employees too are at risk during layoffs if the company decides to play it safe. Unless the company is making a concerted effort to pivot entirely to these new areas, these kinds of new initiatives are often the first ones cut when times are leaner," he said.
While employees associated with event planning are laid off. He said employees associated with event planning find themselves in a tight spot. "If you are involved in planning events, for example, those are some of the first things that companies cut when times get tight People who are part of providing such services are at high risk of being laid off," he added
The layoffs and costs related to hardware-portfolio and other changes will result in a charge of $1.2 billion in the second quarter of fiscal 2023, representing a negative impact of 12 cents on per share profit, Microsoft said.
In a note to staff, Microsoft Chief Executive Satya Nadella said customers wanted to "optimize their digital spend to do more with less" and "exercise caution as some parts of the world are in a recession and other parts are anticipating one."
The layoffs represent “less than 5 percent of our total employee base, with some notifications happening today," Nadella said.
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