Microsoft announced that it will cut about 10,000 jobs in response to “macroeconomic conditions and changes in customer priorities,” the company confirmed on Wednesday.
Your decision will affect almost 5% of its total global workforce. Microsoft employs more than 220,000 people worldwide, including about 122,000 people in the US, according to its corporate website.
“While we are cutting positions in some areas, We will continue hiring in strategic areasCEO Satya Nadella said in an email to employees. He emphasized the importance of building a “new platform” using advances in artificial intelligence.
The tech company said in a document sent to regulators that already notified employees of layoffssome of which will be with immediate effect.
The company indicated that it will also be making changes to its hardware portfolio and make decisions about the offices you rentall with the goal of saving some $1.2 billion dollars.
He noted that customers have increased their spending on digital technology during the pandemic and are now trying to “optimize their spending to get more while spending less.”
“We are also seeing organizations in various industries and geographies they are being cautiousas some parts of the world are in recession and others anticipate being so,” Nadella added.
Earlier this month, Microsoft announced that it would give all its US-based employees unlimited time off under a new “Discretionary Time Off” policy.
Other tech companies have also been cutting jobs amid fears of an economic slowdown.
Only in December companies in this sector eliminated more than 16,100 jobsaccording to relocation company Challenger, Gray and Christmas.
The industry shed the most jobs of any sector last year, cutting 100,000 positions in 2022.
Amazon and software maker Salesforce have announced job cuts, trying to reduce payrolls that grew markedly during the pandemic.
Amazon announced that it will eliminate some 18,000 positions, the largest series of layoffs in its history, although it is only a fraction of its total payroll of 1.5 million employees.
Meta, the parent company of Facebook, is laying off 11,000 people, around 13% of its workforce. And Elon Musk, the new CEO of Twitter, has cut back too.
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Source: La Opinion