Microsoft is laying off 10,000 employees – about 5% of all staff
Microsoft is cutting 10,000 employees, nearly 5 percent of its workforce, in response to what it described as “macroeconomic conditions and changing customer priorities.”
The company said in a regulatory filing Wednesday that it had just notified employees of the layoffs, some of which will take effect immediately.
The company said it will also make changes to its hardware portfolio and consolidate its leased office locations.
The layoffs represent “less than 5 percent of our total workforce, with some reports occurring today,” CEO Satya Nadella said in an email to employees.
“While we are cutting positions in some areas, we are continuing to hire in key strategic areas,” Nadella said. He stressed the importance of building a “new computing platform” using advancements in artificial intelligence.
He said customers who accelerated their spending on digital technology during the pandemic are now trying to “optimize their digital spend to do more with less”.
“We also see organizations in every industry and region taking caution as some parts of the world are in recession and others are anticipating a recession,” Nadella wrote.
Other tech companies have also cut jobs amid concerns about an economic slowdown.
Amazon and enterprise software maker Salesforce announced major job cuts earlier this month as they slashed payrolls that increased rapidly during the pandemic lockdown.
Amazon said it will cut about 18,000 positions. It is the largest layoff in Seattle company history, though it is only a fraction of the 1.5 million employees worldwide.
Facebook parent Meta is laying off 11,000 people, about 13 percent of its workforce. And Elon Musk, Twitter’s new CEO, has slashed the company’s workforce.