Microsoft have announced plans to cut a further 10,000 jobs – a shade under 5% of their total workforce. As with previous rounds of job cuts, Satya Nadella has stated they’ll continue to hire in other “key strategic areas” likely including AI and platforms.
Microsoft will see $1.2 billion in charges in Q2 from these layoffs and also “changes to [the] hardware portfolio”.
This is part of a wider trend of layoffs across the industry recently including:
- Alphabet = 12,000
- Amazon = 18,000
Salesforce = 8,000
Meta = 11,000
as the tech industry boom comes to a halt and companies look to re-focus and prioritise. Google have said that they expanded to quickly during the pandemic and now need to rationalise their workforce.
It will be interesting to see which areas within Microsoft see the brunt of these cuts, as that will really give insight into how they’re reshaping their business.
I wish everyone affected by this the best of luck.
The rumours have abounded for the last few weeks and today they were confirmed-Microsoft are making job cuts…5000 over the next 18 months, with 1400 of those taking place now.
Many thought and hoped it wouldn’t happen, but unfortunately not even the Software giant that is MS has proved immune. However, and while I am sorry to all those who have/will be cut, it isn’t as bad as it could have been. Numbers around 8000-15,000 were often spoken of, some even went as far as 30,000 s0 5,000 is a relatively conservative outcome. The positions are being cut from “R&D, marketing, sales, finance, legal, HR, and IT” according to the memo from Steve Ballmer…
On a more positive note, Ballmer also mentions that they’ll be hiring 2000-3000 new people during the same 18 month time frame, so MS are by no means freezing or stagnating; simply re-appraising and re-focusing. Also, at least MS profits were up…albeit only by 2% but still-that’s a fair increase when you’re talking numbers the size that they are. I was chatting about this at work today and just because the results (in this case and others) aren’t quite as good as predicted-they’re still good so is there as much need to worry as we’re told?