Microsoft lays off 10,000 as job cuts in tech sector spread
- The company said it would also make changes to its hardware portfolio and consolidate leased office locations, while continuing ‘to hire in key strategic areas’
- Amazon and business software maker Salesforce also announced major job cuts this month as they prune payrolls that rapidly expanded during the pandemic lockdown
Microsoft is cutting 10,000 workers, almost 5 per cent of its workforce, in response to what it described as “macroeconomic conditions and changing customer priorities”.
The company said in a regulatory filing on Wednesday that it had just notified employees of the lay-offs, some of which will begin immediately.
The company said it will also be making changes to its hardware portfolio and consolidating its leased office locations.
The lay-offs represent “less than 5 per cent of our total employee base, with some notifications happening today”, CEO Satya Nadella said in an email to employees.
“While we are eliminating roles in some areas, we will continue to hire in key strategic areas,” Nadella said. He emphasised the importance of building a “new computer platform” using advances in artificial intelligence.
He said customers that were accelerating their spending on digital technology during the pandemic are now trying to “optimise their digital spend to do more with less”.
“We’re also seeing organisations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one,” Nadella wrote.