Microsoft announced on Wednesday that it will lay off 10,000 employees in an effort to cut costs amid economic uncertainty and refocus on strategic priorities like artificial intelligence.

As of the end of June, the company had approximately 221,000 employees, and the reductions represent less than 5% of its global workforce.

In a message to employees, Microsoft CEO Satya Nadella stated, “These are the kinds of hard choices we have made throughout our 47-year history to remain a consequential company in this industry that is unforgiving to anyone who doesn’t adapt to platform shifts.”

The company’s largest layoff in roughly eight years will begin on Wednesday. During the course of 2014 and 2015, Mr. Nadella eliminated approximately 25,000 jobs as Microsoft abandoned its disastrous acquisition of Nokia.

Microsoft, like other tech companies, grew quickly during the pandemic.

It has hired over 75,000 people since 2019, capitalizing on the rise of cloud computing and online services.

It warned that more subpar results could follow after announcing its slowest growth in five years in the quarter that ended in October.

Mr. Nadella stated that the changes, which include severance pay and other costs related to restructuring, will cost $1.2 billion.

The business has been making a number of high-risk bets,

After several years of rapid growth, other tech giants have also been cutting costs. As part of its plans to cut 18,000 jobs from its corporate workforce, Amazon is expected to begin a massive round of layoffs on Wednesday.

This month, the business software company Salesforce announced that it planned to lay off 10% of its workforce, or approximately 8,000 workers; and Meta, Facebook’s parent company, made the announcement at the end of last year that it would be eliminating more than 11,000 positions.

Public by world news spot live

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