Microsoft Cuts 10,000 Jobs in Latest Big Tech Layoffs – zoohousenews.com
(Natural News) Microsoft has joined a wave of other tech companies in announcing mass layoffs, cutting about 5 percent of its total workforce.
A securities filing last week noted that they would lay off 10,000 workers as part of a series of cost-cutting measures amid economic uncertainty.
Before announcing the layoff, Microsoft CEO Satya Nadella said in comments at the World Economic Forum in Switzerland that the company was impacted by the weaker global economy. He said: “No one can defy gravity, and gravity here is inflation-adjusted economic growth.”
Nadella said in a memo to employees that changing demand for digital services as the pandemic subsides and fears of a recession have also played a role, noting, “As we’ve seen customers spend their digital spend during the As the pandemic accelerated, we’re now seeing them streamlining their digital spend to do more with less. We are also seeing companies across all industries and geographies exercising caution as some parts of the world are in recession and other parts are anticipating a recession.”
According to a report by the US Securities and Exchange Commission last June, Microsoft employs around 221,000 full-time employees worldwide, of which around 122,000 are in the United States. The 10,000 axed staff are expected to lose their jobs just before the end of March, with some affected staff having already been informed their services are no longer needed. The company will also take on a $1.2 billion fee.
Thousands of layoffs at Google, Meta, Amazon and others
Microsoft is just one of many companies that has felt the effects of the crisis lately. Earlier this month, Google announced layoffs of 12,000 employees, with CEO Sundar Pichai noting that layoffs in the US would be immediate and layoffs in other countries would follow later. Employees there had feared the move was coming, given trends at other tech companies and changes in the company’s performance evaluation system.
Amazon recently announced plans to lay off 18,000 employees in what will be the company’s biggest layoff in its 28-year history. Its workforce had grown from 798,000 in the fourth quarter of 2019 to 1.6 million by the end of 2021. Likewise, Salesforce recently announced that it would cut 10 percent of its workforce.
Meanwhile, Facebook’s parent company Meta announced it would cut 11,000 jobs in the largest layoffs in the company’s history. This corresponds to 13 percent of the company’s workforce. Disappointing forecasts in the fourth quarter of 2022 saw a quarter of its market cap wiped out and the stock plummeted to its lowest level since 2016. Facebook has reportedly increased its headcount by about 60 percent during the pandemic, but is suffering from competition from rivals like TikTok, slowing online advertising spending and other factors.
When Elon Musk took over Twitter last October, around 3,700 employees were cut, which is about half of the company’s workforce. In November, he tweeted that he had “no choice” given the company’s $4 million a day loss.
Some tech CEOs, including Salesforce’s Marc Benioff and Meta’s Mark Zuckerberg, have taken the blame, saying they hired too many people in the early days of the pandemic and failed to predict how that demand would change if the virus-related restrictions are easing.
Statistics show that the tech sector is particularly hard hit compared to the labor market as a whole. For example, a report by Challenger, Gray and Christmas found that tech layoffs rose 649 percent year-on-year in 2022, while overall economy job cuts rose just 13 percent over the same period.
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