Amid the probability of an economic slowdown, Tech giant Microsoft (NASDAQ: MSFT) is putting a further lid on its hiring plans by eliminating open jobs roles. As per a Bloomberg report, the company, in an email, stated that it was reversing job openings, especially in its Azure and security software businesses. However, the company will not terminate any committed job offers.
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The latest news has come after Microsoft earlier announced plans to remove some positions as part of a reorganization initiative. It had mentioned that the reduction would impact less than 1% of its workforce. The company has already slowed the recruiting process for its Windows, Office, and Teams divisions.
After the pandemic led-boom, the technology sector has been facing a lot of heat due to high inflation levels and rising interest rates in 2022. The impact of the macroeconomic headwinds can be seen sector-wide as major tech players like Amazon.com (AMZN), Alphabet Inc.’s Google (GOOGL), and Meta Platforms (META) were either seen going slow on hiring or revoking job offers.
Microsoft Commands a Strong Buy Rating
Overall, the Street is very optimistic about the stock and has a Strong Buy consensus rating based on 28 Buys and one Hold. Microsoft’s average price target of $345.53 signals that the stock may surge nearly 30.5% from current levels. Shares of Microsoft have declined 20.5% so far this year.
MSFT scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform the market.
TipRanks data shows that financial bloggers are 92% Bullish on Microsoft, compared to the sector average of 65%.
Should MSFT Investors Worry?
Microsoft’s plans to slow down hiring in one of its most popular business segments can look alarming. However, the popularity of remote work, growing acceptance of the hybrid work culture, and increasing digital transformation should continue to support this tech behemoth’s cloud platform. Further, Microsoft projects Intelligent Cloud revenues in the fiscal fourth quarter between $21.1 billion and $21.35 billion, which could be a positive for the stock.
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