Even though Microsoft layoffs are affecting thousands of employees, proportionally, they are impacting less than 5 per cent of the tech giant’s workforce
Microsoft layoffs news that caused a stir in the industry has reportedly now been officially confirmed by the company. As per reports, Microsoft Chief Executive Officer (CEO) Satya Nadella has confirmed that the company would be axing as many as 10,000 jobs as it prepares itself for a potential recession.
According to a Reuters report, Microsoft layoffs impacting 10,000 jobs have been confirmed by the CEO in an internal memo. The company has reportedly also said that it would take a $1.2 billion charge to earnings as its cloud-computing customers have started reassessing their spending.
On the contrary to these layoffs at Microsoft, the report adds that the company is also ramping up its efforts towards spending in generative artificial intelligence as the industry sees it as a potential bright spot. Hence, it is also being said that different parts of the business have divergent outlooks.
Even though Microsoft layoffs are affecting thousands of employees, proportionally, they are impacting less than 5 per cent of the tech giant’s workforce, as per the report. Interestingly, Satya Nadella has reportedly also confirmed that while this round of mass layoffs would conclude in March, the company would continue its hiring process in some “strategic areas.”
Before this, several media reports suggested that Microsoft layoffs, which come after Twitter, Meta and Amazon layoffs, may impact people in the HR and Engineering departments alone. However, an official confirmation from the company’s management has come only now.