Microsoft cuts 10,000 jobs in its largest layoff in 8 years. CEO Satya Nadella in reacting to the development said that the cuts are difficult but necessary.
Microsoft Cuts 10,000 Jobs In Its Largest Layoff In 8 Years
Tech Company Microsoft at the moment is cutting off 10,000 jobs, the company on Wednesday said as it continues to deal with economic uncertainty and shifts focus to areas of growth like artificial intelligence.
The said cuts which started on Wednesday and will go through to march will affect less than 5% of the company’s global workforce, CEO Satya Nadella in a memo to the company’s employees said. Microsoft however denied saying the said roles that are being cut. But the layoffs however are reportedly affecting the engineering divisions of the company.
CEO Satya Nadella’s Memo to the Company’s Employees
“These decisions are difficult, but necessary,” Nadella stated. “They are especially difficult because they impact people and people’s lives – our colleagues and friends.”
The reported cuts are coming ahead of the quarterly earnings of Microsoft on Tuesday and close to three months t the day since the company laid off close to 1,000 employees in October. This is the biggest layoff at the company in roughly eight years when the company cut over 20,000 jobs between 2014 and 2015 following its ill-fated purchase of Nokia.
Microsoft Plans to Make Changes to Its Hardware Portfolio
Microsoft in addition to the job cuts said that it plans to make changes to its hardware portfolio and then consolidate its leased office spaces. The changes in question which is inclusive of severance are expected to cost the company $1.2 billion, Nadella stated.
Other Tech Companies Making Staff Layoffs
The decision of Microsoft adds to the ongoing layoffs that have ravaged the tech industry in recent months. T-Mobile, Google verily, Meta, and Intel amongst many others, have all reduced their staff in response to economic upheaval. Amazon is also reported to be cutting 18,000 jobs.