We bring disturbing news of major layoffs at Microsoft. Microsoft acknowledged massive job losses amid ongoing economic uncertainties. 10,000 positions are set to be eliminated at the software giant.
Microsoft CEO Satya Nadella emphasized the need to “match our cost structure with our revenue and where we see customer demand” in an internal memo to staff.
When the company releases its complete financial results next week. It will also disclose that it will take a $1.2 billion charge in its second fiscal quarter. According to Nadella, the expense is “related to severance costs, and changes to our hardware portfolio.” “And the cost of lease consolidation as we create higher density across our workspaces.”
Major layoffs at Microsoft
Microsoft is “allocating both our cash and talent to areas of secular growth and long-term competitiveness for the company while divesting in other sectors,” Nadella continued.”
“Throughout our 47-year history, we have had to make these kinds of difficult decisions in order to maintain our position as a significant business in a sector that is harsh on those who fail to adjust to platform changes.”
Approximately 220,000 people work for Microsoft presently, with 6,000 of those people residing in the UK.
A week before Microsoft’s investor update on its financial performance on January 24, the news was released.
The business remained “focused on helping [its] customers do more with less while investing in secular growth areas and managing [its] cost structure in a disciplined way,” Nadella stated in October 2022.
The specifics of these probable occurrences had not yet been discussed in any depth. But it was obvious to anyone reading between the lines that Redmond had future layoffs and cuts in mind.
Some employees who can stay with the company will receive an unlimited holiday allowance elsewhere. But for the time being, this benefit is only available to pay US employees.
More generally, Microsoft isn’t the only business feeling the effects of a challenging economic environment. Amazon has already stated that it will be letting go of 18,000 employees this year. While Salesforce has declared a 10% personnel cut with maybe more to come.