This week, Microsoft is expected to announce that it is cutting thousands of jobs, just as other major tech companies, such as Amazon, Meta and Twitter, have done.
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Sky News reports that Microsoft could cut up to 10,000 jobs – around five percent of its current employees.
On Wednesday, Bloomberg reported that Microsoft had announced a widespread wave of layoffs in its engineering departments, which was “significantly larger” than the 1% workforce cut the company suffered last year.
Microsoft CEO Satya Nadella warned the tech industry to prepare for twenty-four months of difficulty before growth during an interview with CNBC earlier this year.
Mr. Nadella noted that Microsoft is not exempt from global changes, including the “real economic recession” in many parts of the planet.
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He stated that the technology industry is currently facing a decline in demand, which was initially caused by the Covid-19.
“The pandemic has caused a huge increase in demand for our products, which has remained relatively stable since then. In addition, there is also a significant recession in some parts of the world, which further strengthens this need,” said the Microsoft CEO.
As the impending layoffs loom, it is uncertain how many roles at the company, which spans multiple countries, including those in the UK, will be affected.
As of June 30 last year, the company had approximately 221,000 full-time staff members worldwide, 122,000 in the Americas and 99,000 scattered across other international regions.
Shortly before the scheduled announcement of Microsoft's quarterly financial results, the company is warning investors that mass layoffs will take place.
These layoffs follow job cuts at some of the tech industry's top forces, including Amazon, which cut more than 18,000 jobs this month due to the "tumultuous economy.".
After the wave of job cuts at tech giants like Twitter , Meta ( Facebook 's parent company ) and other Silicon Valley companies, came the announcement from Amazon .
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Just recently, Salesforce and Vimeo sadly announced that they would be laying off many of their employees.
As we enter 2023, Salesforce announced it would be cutting about 10% of its workforce — a total of about 8,000 jobs — and closing select offices. Vimeo has also taken steps to reduce its staff by 11%.
Since 2022, the website layoffs.fyi has documented over 180,000 layoffs at more than 1,100 tech companies – a stark reminder of how this industry can be so cruel and heartless when it comes to downsizing its workforce.
Source of information: independent.co.uk
