Tuesday, February 7, 2023

Microsoft will cut 10,000 jobs, roughly 5% of its payroll

Microsoft will cut about 10,000 jobs, roughly 5% of its workforce, in response to “macroeconomic conditions and changing customer preferences,” the company said Wednesday.

The tech company said in a filing to regulators that it has already notified employees of the layoffs, some of which will be effective immediately.

The company indicated it would also make changes to its hardware portfolio and consolidate the offices it rents, all with the aim of saving about $1.2 billion.

“The cuts represent less than 5% of our total payroll, and some notices will be distributed today,” CEO Satya Nadella said in an email to employees.

“While we are cutting positions in some areas, we will continue to hire in strategic areas,” Nadella said. He stressed the importance of creating a “new platform” using advances in artificial intelligence.

He added that consumers have increased their spending on digital technology during the pandemic and are now trying to “optimize their spending to get more from less”.

“We are also seeing organizations across industries and geographies becoming cautious, as some parts of the world are in recession and others are anticipating it,” Nadella said.

Other tech companies are also cutting jobs amid fears of an economic recession.

Amazon and software maker Salesforce have announced job cuts, trying to reduce rapidly growing payrolls during the pandemic.

Amazon announced it would eliminate about 18,000 positions, the largest series of layoffs in its history, though only a fraction of its total payroll of 1.5 million employees.

Facebook’s parent company Meta is laying off 11,000 people, which is about 13% of its workforce. And Twitter’s new CEO Elon Musk has made the cut, too.

Nation World News Desk
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