Microsoft (ticker: MSFT) might decide to halt its television advertising campaigns to save money as concerns grow on the back on weakening consumer spending.
According to unnamed sources, the company has already put a pause on its TV advertising. This follows a report released by Variety claiming that the company will sit out TV upfronts, the opportunity to buy back inventory in advance.
Sources also go ahead to confirm that the company made advertising cuts because of rising interest rates and supply chain challenges as a strategy to avoid the possibility of layoffs. According to the company, it has chosen not to participate in TV upfronts, a period in which television networks and advertisers negotiate marketing and ad deals.
Microsoft spent an estimated $294.8 million on TV advertising in 2021. According to sources familiar with the story, other global advertisements for Microsoft companies, such as Xbox, will still be handled by marketing company IPG’s McCann Worldgroup.
Shares of the tech company dropped 2.7% on Friday to $257.76, while the NASDAQ Composite Index fell 2.1%.
The company is yet another tech giant to announce a slowdown in hiring in 2022 due to economic uncertainty. The hiring slowdown will particularly affect Windows, Office, Teams chat, and software groups. The company also revised its financial forecasts lower for the June quarter earlier this month.