Microsoft will lay off 10 thousand employees to reduce costs – 01/18/2023 – Market

Microsoft said on Wednesday (18) it will cut 10,000 jobs by the end of the third quarter of 2023. The measure, which affects about 5% of total employees, aims to reduce costs amid economic uncertainty and a slowdown of the US technology sector.

The changes, which involve layoffs and other restructuring costs, will result in a cost of $1.2 billion in the second quarter of 2023, according to the company.

In a note, Microsoft CEO Satya Nadella said that after the pandemic, customers are now looking to “optimize their digital spending to do more with less” and “exercise caution as some parts of the world are in recession and others are anticipating an.”

“At the same time, the next big wave of computing is being born with advances in AI, as we are turning the world’s most advanced models into a new computing platform,” said Nadella.

The news of layoffs, released initially this Tuesday (17), follows the cuts that occurred last year.

In July of last year, Microsoft said that a small number of positions had been eliminated. The Axios news website reported in October that the company had laid off around 1,000 employees across various divisions.

The Satya Nadella-led company is also facing a slump in the personal computer market after the pandemic boom died down, leaving little demand for Windows and other company software.

With the layoffs, Microsoft joins other technology companies that have announced cuts in recent months, such as Meta, Amazon, Salesforce and HP.