March 30, 2023

Mass layoffs at Microsoft will affect 10,000 employees; know more

Mass layoffs are about to happen at Microsoft, said Satya Nadella, CEO of the technology company. In all, 10,000 employees will be fired with the intent of making cost cuts, Microsoft announced last Wednesday (18). company decision Technique affected by the uncertainties in the current economy.

As of June 2022, about 221,000 employees were part of Microsoft’s workforce worldwide, according to data from the US Securities and Exchange Commission. In all, there were 122,000 workers concentrated in the United States, making up most of the company.

Satya Nadella reports that the company is vulnerable to the global economy. Then he announced layoffs in Switzerland at the World Economic Forum in Davos.

“We live in times of great change,” he wrote, “and when I meet with clients and partners, some things become clear.” “First, when we saw customers accelerate their digital spending during the pandemic, we now see them optimizing their digital spending to do more with less,” he said, referring to the impacts of the coronavirus pandemic on global inflation.

The cuts will be at just 5% of the staff, Nadella noted. The closure will last until March of this year. The CEO made it clear that this is not an easy decision for the company.

Other technology companies have also experienced mass layoffs, much like the way Microsoft will

This year, other tech companies have also made headcount cuts with the aim of cutting costs. After the pandemic period, digital media requirements decreased after face-to-face work resumed.

As shown, the Amazon announced that it would lay off about 18,000 of its employees. Meta also said that it intends to lay off 11 thousand of its employees, as well as Salesforce, which announced the dismissal of 10% of its team. This is an unprecedented pace for tech companies, having increased by 649% since 2022.

As for the second half, Microsoft will announce what will be accomplished on January 24th.