Microsoft lays off workforce and enters new fiscal year

With the start of the new fiscal year from July 1, Microsoft has announced that the company has trimmed its workforce across geographies.

The company did not explain the roles and numbers that had been trimmed and also did not disclose the locations.

The company cut roles at its online news portal MSN.com, as it shifted to an AI-powered algorithmic feed, according to the report, which added that jobs were also cut in the Microsoft Azure cloud division.

Earlier, the company also said that it will close its retail stores and take a related pre-tax asset impairment charge of $450 million amid the ongoing coronavirus outbreak.

The spokesman said it is common for the company to re-evaluate its business as it enters a new fiscal year.

Late in April, Microsoft's third-quarter results beat Wall Street sales and profit expectations, powered by sharp demand for its Teams chat and online meeting app and Xbox gaming services as the world shifted to working from home because of the pandemic.

The company's revenue rose 15% to $35.02 billion in the third quarter while net income rose to $10.75 billion, or $1.40 per share.