Microsoft has confirmed significant job cuts as global economic uncertainty continues, with around 10,000 jobs being laid off at the tech giant
In an internal memo to the employee, Microsoft CEO Satya Nadella noted the need to “align our cost structure with our revenue and where we see customer demand.”
The company also revealed that it will charge a fee of $1.2 billion in its fiscal second quarter when it releases its full financial results next week, with the cost, Nadella said, “related to severance costs, changes to our hardware portfolio, the cost of merging leases as we create higher density across Our workspaces.
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Nadella added that Microsoft “allocates our capital and talent in areas of secular growth and the long-term competitiveness of the company, while foregoing others.”
“These are the kinds of tough choices we’ve made over our 47-year history to remain a company that matters in an industry that is so unforgiving as to adapt to platform shifts.”
Microsoft currently employs around 220,000 people worldwide, 6,000 of which are in the UK.
The news comes a week before an investor update on Microsoft’s financial performance on January 24.
Nadella said in October 2022 that the company remained “focused on helping [its] Customers do more with less, while investing in and managing secular growth areas [its] cost structure in a disciplined manner.”
To anyone reading between the lines, it was clear that Redmond had future cutbacks and layoffs in mind, though any details of these potential events were not discussed in any detail.
Elsewhere in the company, some workers who are able to stay with the company are slated to receive unlimited vacation allowance, but for now at least, it’s limited to only salaried American workers.
More broadly, Microsoft is not the only company facing the effects of a difficult economic climate. already this year, Amazon announced plans to lay off 18,000 of its employees, while sales force He announced a 10% cut in the number of employees, with More are likely to follow.