“We have noticed that there are a small number of employees whose positions have ended. This is a result of strategic alignment, and like all companies we evaluate our business on an ongoing basis. We continue to invest in certain areas and expect to grow the number of employees next year.”
The company insists that the layoffs are unrelated to the current economic situation. According to the company, the dismissals will take place in many geographical areas, but it has not been announced in which areas. Microsoft employs about 181,000 people worldwide. In Israel, Microsoft employs about 2,000 people in research and development.
Morgan Stanley Bank lowers the target price of the company’s stock from $ 372 per share to $ 354 but maintains an overweight recommendation for the company. The stock closed at $ 253. According to analyst Keith Weiss of Morgan Stanley, the company is “not immune to recession,” and while he continues to believe in the company in the long run, he believes short-term growth could be hurt. He said Microsoft has so far performed well relative to other software companies but it will have to overcome a sharp decline in demand for PCs that is also spreading to demand from commercial PC companies. Most of Microsoft’s profits come from the business sector and this is what has enabled it so far to present better results than other software companies.
However, in his opinion, the weakness in the consumer sector, which includes products such as Outlook, Windows, Surface, gaming software and hardware and certain elements of LinkedIn, will also affect the company’s results and he expects that at worst they will hit up to $ 1 per share, about 9%.
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