Microsoft confirms major layoffs
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Microsoft has confirmed significant job losses as global economic uncertainty continues, with about 10,000 job openings at the tech giant
In an internal memo to staff, Microsoft CEO Satya Nadella cited the need to “align our cost structure with our revenues and where we see customer demand.”
The company also revealed that it will charge $1.2 billion in its second fiscal quarter when it reports full financial results next week. consolidation of leases as we create higher density in our workspaces.”
Fired from Microsoft
Nadella added that Microsoft “allocates both our capital and talent to areas of secular growth and long-term competitiveness for the company, while divesting in other areas.”
“These are the kind of tough choices we’ve made in our 47-year history to remain a consistent company in this industry that is unforgiving to anyone who doesn’t adapt to platform shifts.”
Microsoft currently employs approximately 220,000 people worldwide, 6,000 of whom are in the UK.
The news comes a week before Microsoft’s January 24 financial performance investor update.
Nadella said in October 2022 that the company remained, “focused on helping [its] clients do more with less while investing in and managing secular growth areas [its] cost structure in a disciplined way”.
It was clear to anyone reading between the lines that Redmond had future cuts and layoffs in mind, though the details of these possible events had not yet been discussed in detail.
Elsewhere in the company, some employees who can stay with the company get unlimited vacation pay, but for now this is limited to salaried employees, in the US only.
More broadly, Microsoft is not the only company dealing with the effects of a difficult economic climate. This year already Amazon has announced plans to lay off 18,000 of its staff Sales team announced a 10% headcount reduction more may follow.