A mass layoff is about to happen at Microsoft, as reported by Satya Nadella, CEO of the technology company. In all, 10,000 employees will be dismissed with the intention of making cuts in expenses, as announced by Microsoft last Wednesday (18). The company’s decision to technology was influenced by the uncertainties of the current economy.
As of June 2022, around 221,000 employees were part of Microsoft’s workforce worldwide, according to data from the US Securities and Exchange Commission. In all, 122,000 workers were concentrated in the United States, making up most of the company.
Satya Nadella informed that the company is vulnerable to the global economy. He then announced the layoffs in Switzerland via the World Economic Forum in Davos.
“We are living in times of significant change, and when I meet with customers and partners, some things become clear,” he wrote. “First, when we saw customers accelerate their digital spending during the pandemic, now we see them optimize their digital spending to do more with less,” he said, highlighting the influences caused by the coronavirus pandemic on global inflation.
The cuts would be in just 5% of employees, as indicated by Nadella. The shutdowns will take place until the month of March of this year. The CEO highlighted that this is not an easy decision for the company.
Other technology companies have also had mass layoffs, such as how Microsoft will have
This year, other technology companies have also made cuts in employees with the intention of reducing costs. After the pandemic period, the demands of digital media decreased after the resumption of face-to-face work.
As indicated, the Amazon announced that it will lay off around 18,000 of its employees. Meta also said it intends to cut 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, increasing by 649% since 2022.
As for the second half, Microsoft will announce what will be done on January 24th.
