Microsoft says it will cut 10,000 jobs due to the poor economy | Aici

WASHINGTON – Microsoft said it will cut 10,000 jobs next month as the economic downturn continues to punish the US tech giant.

The job cuts will affect less than five percent of the workforce and will follow similar actions by the owners of Facebook Meta, Amazon and Twitter that have announced thousands of layoffs in the sector. the inevitable technology.

The cuts are “in response to macroeconomic conditions and changing consumer priorities,” the maker of the Windows operating system said in a US regulatory filing.

The layoffs come after a major hiring freeze in the tech industry as companies struggle to meet high demand for products as people go online for work, shopping and entertainment during the pandemic. coronavirus.

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When asked about the recent layoff announcement, Microsoft CEO Satya Nadella said that “no one can resist gravity” and pointed to rising costs affecting economic growth. global economy.

Microsoft’s filing with the US Securities and Exchange Commission said the reduction will result in a charge of $1.2 billion in its next earnings announcement on January 24 when the Redmond, Washington company is expected to to post the slowest revenue growth of the year.

“Having seen consumers accelerate their digital spending during the pandemic, we’re now seeing them optimize their digital spending to do more with less,” Nadella said in a note to employees, published by the SEC.

He said businesses everywhere are “being cautious because some parts of the world are in recession and other parts are waiting for it.”

Nadella did not specify which departments were affected by the layoffs, but said the software giant would “continue to hire in key strategic areas,” pointing to intelligence as a key growth area.

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In addition to business software and cloud computing distribution, Microsoft owns the LinkedIn professional network, the Bing search engine and the Xbox video game company.

The wave of layoffs in the tech sector has been rewarded by stock markets that have grown concerned about excessive spending by US tech giants.

Meta’s share price has risen 35 percent since it announced 11,000 job cuts on Nov. 9 and Amazon’s stock is up more than 15 percent as 18,000 people were laid off early on. this month.

Microsoft, which according to its website currently has 221,000 employees worldwide, has hired 75,000 since 2019, Wedbush Securities analyst Dan Ives said in a note.

Markets will “continue to applaud” the “help” strategy amid a tough economy, Ives added.

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