Microsoft, Disney and Oracle Slash Workers: A Round-Up of the Recent Tech Layoffs

Key takeaways

• Last week Oracle allegedly slashed hundreds of jobs in its Oracle Health division
• Disney continues on its cost-cutting restructure with a further 2,500 employees losing their jobs
• Microsoft laid off another 158 workers from its Seattle HQ, separate to its huge 10,000-strong mass layoffs announcement

Womp womp: Tech layoffs are still happening, and they’re also spreading to other sectors. The ongoing financial uncertainty for businesses means we’re still not short of layoffs news as we head into the summer. Here’s the latest.

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What’s the latest with layoffs news?

Oracle

Tech conglomerate Oracle has allegedly slashed hundreds of jobs and rescinded job offers in its Oracle Health division. The cuts are also said to affect IT service provider Cerner workers, which Oracle bought for a hefty $28 billion last year.

The latest move follows from laying off 200 employees in October 2022. Oracle’s share price is up 45% this year thanks to its gains in other divisions that are focusing on generative AI.

Disney

Media giant Disney confirmed it’s planning on laying off another 2,500 employees as part of its overarching plan to cut 7,000 roles as part of a massive $5.5 billion restructuring of the business. CEO Bob Iger, who returned to the helm late last year, said in a conference call last month the layoffs were a “necessary step to address the challenges we face today”.

Disney’s CFO, Christine McCarthy, also announced that she was stepping down last week. Disney’s share price has struggled with political instability in Florida, where the flagship offices and Disneyworld theme park is based, and bloated streaming services costs. The stock is only 0.88% up in 2023.

Microsoft

Big Tech behemoth Microsoft has continued its cost-cutting efforts as it reduced its Remond, Washington headquarters’ employee base by 158. The move was separate to the previously announced 10,000 mass layoffs round the computing titan was conducting.

Microsoft’s share price has enjoyed a 41% lift in 2023 thanks to its efforts in bringing generative AI to the masses, including a landmark partnership with ChatGPT creators OpenAI.

Why are tech companies still making layoffs?

A tricky economic environment has left businesses feeling the pinch. The Federal Reserve has aggressively raised interest rates to tame inflation, which peaked at 9.1% last summer and is currently sitting at 4% as of May — double the Fed’s target.

Interest rate targets are now at 5% to 5.25%. This makes money more expensive to borrow for businesses and adds further pressure to margins already stretched after three years of a pandemic. According to the tech layoffs tracker, it’s been a disastrous mix for the sector, with tech seeing over 210,000 employees laid off in 2023 alone.

The bottom line

The layoffs road may, unfortunately, be a long and winding one as companies grapple with rising costs and decreased consumer demand. Generative AI is buoying the stock market but covers the underlying cost efficiencies driving the layoffs decisions business leaders are making.

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