The technological crisis worsens. Microsoft announced this Wednesday that it will lay off a total of 10,000 employees, less than 5% of its workforce. The company has already begun to notify some of the terminations. The executive president of the giant, Satya Nadella, said in a statement that he reports to Efe that the company is undergoing “significant changes.” Last July, Microsoft notified a round of layoffs that affected 1% of its workforce, which had a total of around 180,000 employees, as a result of a “strategic readjustment” at the beginning of its new fiscal year.
In this sense, the multinational has indicated that it will carry out this personnel reduction during the first months of 2023, the third fiscal for Microsoft, while it will assume an extraordinary adverse impact of 1,200 million dollars (1,109 million euros) in its accounts of the second fiscal quarter, which I will announce on January 24. In addition to the announced workforce adjustment, the multinational has announced that it will also undertake changes in its hardware portfolio, as well as the consolidation of leases to create a greater density in its workspaces.
More layoffs at Microsoft
“We will align our cost structure with our revenues and where we see customer demand,” CEO Nadella said in an email to the staff, stressing that while the company is eliminating roles in some areas, it will continue to hire in areas strategic key. “We will continue to invest in strategic areas for our future, which means we are directing our capital and talent into areas of secular growth and long-term competitiveness for the company, while divesting from other areas,” Nadella explained.
“We will continue to invest in strategic areas for our future, which means we are directing our capital and talent into other areas of secular growth”
“We are living in times of significant change,” added the executive, for whom it is clear that, just as customers accelerated their digital spending during the pandemic, they are now optimizing it “to do more with less,” while organizations in all industries and geographies “are cautious as some parts of the world are in a recession and other parts anticipate one.” Thus, Microsoft would be the last major technology company to announce a substantial workforce cut, after those announced by Amazon, Meta, Salesforce or Twitter.