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Around 5% Of Microsoft’s Workforce Will Lose Their Jobs Starting Wednesday

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Around 5% Of Microsoft's Workforce Will Lose Their Jobs Starting Wednesday

(CTN News) – The global economy is slowing, so Microsoft announced thousands of job cuts this week.

By the end of the third quarter of fiscal year 2023, the software company plans to reduce its workforce by 10,000 people.

Satya Nadella, the company’s CEO, said the cuts are due to macroeconomic conditions and changing customer priorities.

Around 5% of Microsoft’s workforce will be laid off, with some notifications starting as early as Wednesday.

While we’re cutting some jobs, we’re still hiring in key strategic areas. We know this is a tough time for everyone,” Nadella wrote in a statement. “We’ll work through this process in the most thoughtful and transparent way we can.”

Bloomberg reported that Microsoft is cutting jobs in its engineering division.

Stocks of Microsoft (MSFT)

Shares of the company opened at $241.56 in early Wednesday trading.

What is Microsoft’s employee count?

As of June 30, 2022, Microsoft employed about 221,000 people worldwide, including 122,000 in the U.S.

‘Difficult, but necessary’: Nadella

According to Nadella, the company will continue to invest in strategic areas for its future, “which means we’re allocating both our capital and talent to areas of long-term growth.”

He wrote, “These are the kinds of tough choices we’ve made throughout our 47-year history to remain a relevant company in an industry that’s unforgiving.

In Q2, we’re taking a $1.2 billion charge for severance, hardware changes, and lease consolidation as we get more dense across our workspaces…. This is a very difficult decision, but it’s a necessary one. We’ll treat our people with dignity and respect and act transparently.

We’ve made these difficult choices over the past 47 years to stay relevant in this industry that’s unforgiving to those who don’t adapt,” he said.

In Q2, we’re taking a $1.2 billion charge for severance, hardware changes, and lease consolidation as we get more dense across our workspaces…. This is a difficult decision, but it’s a necessary one. We’ll treat our people with dignity and respect and act transparently.

Layoffs at Microsoft amid a tech slowdown

During the first two years of the pandemic, companies like Amazon and Meta hired a lot.

According to Layoffs.fyi, a site that tracks tech layoffs since March 2020, there were at least 154,000 layoffs last year.

So far this year, more than 25,000 layoffs have been reported on the website, which is likely an undercount.

According to Layoffs.fyi, the top U.S. tech companies last year were:

  • 11,000 metas

  • 10,000 on Amazon

  • 4,100 Ciscos

  • 4,000 Carvanas

  • 3,700 on Twitter

Lockdowns hurt consumer spending. Travel and restaurants were off the table, so people started buying Amazon and Peloton gear instead.

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