Tech job cuts spread, Microsoft to lay off 10,000 people

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Microsoft is cutting 10,000 jobs, or about 5% of its workforce, in response to what it described as “changing macroeconomic conditions and customer priorities.”

In a regulatory filing on Wednesday, the company notified employees of layoffs, some of which will begin immediately.

The company also said it will make changes to its hardware portfolio and consolidate leased office space.

CEO Satya Nadella said in an email to employees that the layoffs “represent less than 5% of our total employee base, with some notices happening today.”

“As we eliminate roles in certain areas, we will continue to hire in key strategic areas,” Nadella said. He emphasized the importance of creating a “new computing platform” using advances in artificial intelligence.

He says consumers who have been accelerating digital spending during the pandemic are now trying to “optimize their digital spending to do more with less.”

“We also see organizations in all sectors and regions acting cautiously as some parts of the world are in recession and others are waiting for it,” Nadella wrote.

Other tech companies have also cut jobs due to the economic downturn.

Amazon and enterprise software maker Salesforce announced job cuts earlier this month as they slashed wages that have grown rapidly during the pandemic.

Amazon said it would cut about 18,000 positions. Despite representing just a fraction of its 1.5 million employees worldwide, it’s the largest round of layoffs in the Seattle company’s history.

Facebook’s parent company Meta is laying off 11,000 people, or about 13% of its workforce. And Twitter’s new CEO, Elon Musk, has cut the company short.

Nadella did not directly address the layoffs Wednesday when he spoke at the World Economic Forum’s annual meeting in Davos, Switzerland this week.

Asked by forum founder Klaus Schwab what the tech cuts mean for the industry’s business model, Nadella said companies that thrived during the COVID-19 pandemic are now seeing it “reset.” request

“Honestly, we have to be efficient in the tech industry too, right?” Nadel said. “It’s not about everyone doing more for less. We must do more with less. That’s why we need to demonstrate our productivity gains with our type of technology.

Schwab also asked Nadella about employee loyalty to Microsoft. Nadella said workers should “see Microsoft as a platform to connect with our mission to achieve what matters to them.” I think it’s a social equation.

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AP Business Writer Kelvin Chan contributed to this story from London.

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