Microsoft to cut 10,000 jobs to cope with customer cost reductions in cloud computing and uncertain economic conditions, another sign of the turmoil facing the US tech sector in the grip of a wave of layoffs .
These workforce reductions will lead to a $1.2 billion charge that will be recognized in the second quarter, Microsoft said Wednesday.
In a memo to staff, shared with Reuters, Microsoft chief executive Satya Nadella said the process of layoffs, which affects less than 5% of the total workforce, would end by the end of the month. March.
In this note, the leader explains that Microsoft customers want to “optimize their digital spending to do more with less” and “be cautious because some parts of the world are in recession when other parts are anticipating one”.
Computer market collapse
The IT giant is also facing a slump in the personal computer market after the boom generated by the pandemic, which led to weak demand for Windows and related software.
Satya Nadella specifies that the group will continue to invest in strategic areas, such as artificial intelligence like the company OpenAI, owner of the conversational artificial intelligence ChatGPT whose launch caused a stir.
“The next big wave in computing is being born with advances in artificial intelligence as we transform the world’s most advanced models into a new computing platform,” he said.
The 10,000 job cuts at Microsoft come after already smaller workforce reductions last year.
In July, Microsoft said a small number of jobs had been cut, while news site Axios reported in October that the company had laid off fewer than 1,000 employees across multiple divisions.