Page 24 - ARUBA TODAY

Friday 7 July 2017 BUSINESS
A24

Microsoft laying off thousands of workers in sales shakeup

REDMOND, Wash. (AP) — layoff notices Thursday, but worldwide. Nearly 71,600 of growing trend known as annual revenue. More than
Microsoft is laying off thou- declined to provide further them work in the U.S., with “cloud computing.” 26 million consumers sub-
sands of employees in a specifics except that thou- the remainder elsewhere. That part of Microsoft’s op- scribe to Microsoft’s Office
shake-up aimed at selling sands of sales jobs will be The job cuts are part of Mi- erations has been playing 365 service that includes its
more subscriptions to soft- cut. “Like all companies, crosoft’s shift away from its an increasingly important Word, Excel and other pop-
ware applications that can we evaluate our business traditional approach of li- role, especially among cor- ular programs. That number
be used on any internet- on a regular basis,” Micro- censing its Office software porate and government has more than doubled in
connected device. soft said in a statement. and other programs for a customers, since Satya the past two years.
Most of the people losing “This can result in increased one-time fee tied to a single Nadella replaced Steve Meanwhile, revenue from
their jobs work in sales and investment in some places computer. The company is Ballmer as the company’s licensing of Microsoft’s
are located outside the U.S. and, from time-to-time, re- now concentrating on sell- CEO in 2014. Microsoft’s Windows operating system
The Redmond, Washing- deployment in others.” ing recurring subscriptions “commercial cloud” seg- has been increasing by 5
ton, company confirmed Microsoft Corp. employs for software accessible on ment is on a pace to gen- percent or less in the past
that it began sending the about 121,500 people multiple devices, a rapidly erate about $15 billion in three quarters.q
Stocks skid on worries about slower hiring and growth

By MARLEY JAY The Standard & Poor’s
AP Markets Writer 500 index dropped 22.79
NEW YORK (AP) — U.S. points, or 0.9 percent, to
stocks took their big- 2,409.75. The Dow Jones
gest loss in more than six industrial average fell
weeks Thursday as inves- 158.13 points, or 0.7 per-
tors reacted to mounting cent, to 21,320.04. The Nas-
evidence that hiring has daq composite sank 61.39
slowed down. Energy and points, or 1 percent, to
health care companies fell 6,089.46.
sharply, and so did retail- The Russell 2000 index,
ers. which is comprised of
Stocks slumped after ADP, smaller, more U.S.-focused
a payroll processing com- companies, shed 19.33
pany, said private busi- points, or 1.4 percent, to
nesses added fewer jobs 1,400.81.
in June than investors ADP’s survey showed that
had expected. The losses private U.S. businesses add-
deepened in afternoon ed 158,000 jobs in June,
trading. and the firm lowered its
Bond prices fell and yields estimates for job growth in
jumped, which hurt com- April and May. The unem-
panies that pay large divi- ployment rate is at 40-year
dends, such as major drug Traders Michael Milano, right, and Kevin Lodewick work on the floor of the New York Stock Ex- lows, but there isn’t much
companies and real es- change, Thursday, July 6, 2017. Retailers and technology stocks are leading U.S. indexes lower in evidence that wage gains
early trading on Wall Street.
tate investment trusts. Re- (AP Photo/Richard Drew) and economic growth are
tailers sank after L Brands, speeding up.
the parent company of hiring has slowed down in and rates are already ris- it will end up hampering “We were expecting a
Victoria’s Secret, reported recent months. That has ing in the U.S. Higher inter- growth expectations,” said significantly higher growth
weak sales in June. investors worried, because est rates tend to slow down Krishna Memani, chief in- rate in the second quar-
The ADP survey was the lat- the European Central Bank economic growth. vestment officer at Oppen- ter,” said Memani. “It’s not
est piece of evidence that may start raising rates soon “If rates rise meaningfully, heimer Fund. panning out that way.”q

Survey: US companies add a modest 158,000 jobs in June

By CHRIS S. RUGABER businesses added a mod- hiring has decelerated but just 121,000 from March Job gains have averaged
AP Economics Writer est 158,000 jobs in June, a remains healthy enough to through May, according 162,000 through the first
WASHINGTON (AP) — U.S. survey found — a sign that lower the unemployment to government data. Most five months of this year,
rate over time. economists chalk it up to a according to the Labor
Payroll processor ADP said dwindling supply of workers Department, a solid total
Thursday that the strongest as the unemployment rate that has pulled the unem-
job gains were in services, falls. ployment rate down from
such as education, health Analysts predict that the 4.7 percent in December
care, hotels and restau- government’s jobs report, to 4.3 percent in May, the
rants. Manufacturers add- to be released Friday, will lowest in 16 years.
ed 6,000 jobs, but construc- show 179,000 jobs were That has left many business-
tion firms and mining com- added last month, accord- es struggling to find the peo-
panies, which include oil ing to data provider Fact- ple they need to fill open
and gas drillers, cut 6,000. Set. jobs. There are more than
The data echoes other fig- The ADP covers only pri- 6 million open positions, a
ures that show hiring has vate businesses and often record level, according to
slowed over the spring, diverges from official fig- a separate report from the
with job gains averaging ures. Labor Department.q