Microsoft lays off 10,000 employees

Microsoft said on Wednesday that it would lay off 10,000 employees through March 31 as the software maker braced for slower revenue growth. The company is also incurring a $1.2 billion charge.

Alphabet, Amazonand Sales force is one of the technology companies that have reduced number of employees in recent weeks. The drop comes after demand for cloud computing and collaboration services increased as businesses, government agencies and schools encouraged teleworking to minimize Covid exposure.

Rising prices have caused companies to become more careful about spending on technology, hurting the outlook for tech stocks that outperform other market sectors year after year. Now Microsoft and its peers are picking up the goods. In JulyMicrosoft speak it cut less than 1% of its staff and in October it confirmed An additional round of job cuts is said to have affected less than 1,000 workers.

CEO Satya Nadella stated about the move: “I am confident that Microsoft will emerge stronger and more competitive after this period.” employee memo on Wednesday. The move will reduce Microsoft’s headcount to less than 5%, and some employees will find out this week if they lose their jobs, he wrote.

“Employees in the United States who qualify for benefits will receive above-market severance pay, health care, and stock purchases for 6–60 days prior to their termination,” Nadella writes.

Earlier this month, Nadella indicated that the company may have to adjust.

“I think for us as a global company, we’re not going to avoid what’s happening on a macro scale,” he said in an interview. interview with CNBC-TV18. “We’ll also have to focus on our own operations to make sure our costs are in line with our revenue growth.”

Microsoft has call for Revenue growth of 2% in the fiscal second quarter, would be the slowest pace since 2016.

Massive layoffs aren’t an annual occurrence for 47-year-old Microsoft, but they do happen from time to time. In 2017Microsoft lay off thousands of employees in a massive reorganization of its sales unit. In 2014, after acquiring Nokia’s devices and services business, Microsoft cut 18,000 Everyone.

Fees related to severance, hardware, and lease consolidation costs, Nadella wrote.

“Each of us and every team across the company must raise the bar and perform better than the competition to deliver meaningful innovation that customers, communities and countries can enjoy,” Nadella writes. really benefit.” “If we do this, we will become stronger and grow long into the future; it’s as simple as that.”

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