Microsoft announces the departure of 10,000 employees by the end of March. The tech giant wants to save money.
After Meta and Amazon, it’s Microsoft’s turn to announce a massive layoff plan. The computer giant confirms that it will cut 10,000 jobs by the end of March. This represents just under 5% of its workforce. The Redmond firm discusses the economic situation, as well as the changes in priorities of its customers. In a blog post, comparable to that published by Mark Zuckerberg to discuss the situation of Meta, Satya Nadella explains this decision and the desire to review its plans. The CEO of the company explains that he saw “customers accelerate their digital spending during the pandemic”. The latter are now seeking to optimize them for “do more with less”.
He adds see “organizations from all sectors and regions to exercise caution as some parts of the world are in recessions and others are anticipating one”. A particular context when Microsoft has increased hiring in recent years. The number of employees has increased from 114,000 in 2016 to 221,000 in 2022, as reported by Statista. Turnover has also risen sharply in recent years and the group is also preparing to announce its 2022 results. very slow pace for the computer giant.
A new computing wave is being born
In his post, Satya Nadella also discusses the progress of artificial intelligence that is currently shaking the sector. “The next great wave of computing is born with advances in AI, as we transform the world’s most advanced models into a new computing platform”, he explains. The group relies in particular on the cloud and has just announced the arrival of ChatGPT within its Azure OpenAI offer. The company says it will continue “to invest in strategic areas” and to hire in these sectors.
Microsoft indicates that these savings measures will lead to a charge of $1.2 billion in the group’s staggered second quarter accounts. In recent months, several large groups in the tech sector have confirmed workforce reductions. The parent company of Facebook and Instagram, Meta, announced in November the layoff of 11,000 people. At the start of the year, Amazon confirmed the elimination of 18,000 jobs worldwide, and in particular in Europe.