Microsoft Corp MSFT shares are trading lower Wednesday after the company announced plans to strengthen its business, which is expected to result in a $1.2 billion charge in the company’s fiscal second quarter.
What Happened: Microsoft laid out plans to strengthen the company in response to macroeconomic pressures and changing customer priorities. The plans include a workforce reduction and changes to the company’s hardware portfolio, as well as lease consolidation.
During the pandemic, Microsoft customers accelerated their digital spending, but now they are optimizing spending to do more with less, the company said.
“We’re also seeing organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one,” said Satya Nadella, CEO of Microsoft.
Related Link: Microsoft Slashes Workforce After Denying Layoff Plans, Narrows Focus In Response To Macro Pressures: ‘It’s Showtime’
Microsoft plans to cut approximately 10,000 employees by the end of fiscal third quarter 2023. The company will also consolidate its leases to create higher density across its workspaces and make changes to hardware offerings. The changes are expected to have a 12-cent-per-share negative impact to the company’s diluted earnings.
Microsoft is set to report its fiscal second-quarter results on Jan. 24. Before Wednesday’s announcement, the company was expected to earn $2.30 per share on quarterly revenue of $52.99 billion, according to Benzinga Pro.
MSFT Price Action: Microsoft has a 52-week high of $315.95 and a 52-week low of $213.43.
Microsoft shares are down 1.61% at $236.48 at the time of writing, according to Benzinga Pro.
Photo: courtesy of Microsoft.
Image and article originally from www.benzinga.com. Read the original article here.