Microsoft announces 10,000 layoffs – ChannelNews

Microsoft will lay off 10,000 people, or about 5% of its workforce, in the coming months. It’s the biggest wave of layoffs from the world’s largest software company since 2014.

For the record, in 2014, Microsoft laid off 18,000 people after buying Nokia devices and services for around $7 billion.

Now Microsoft CEO Satya Nadella is citing slowing demand for Windows PCs and licenses as well as a potential recession. However, the Redmond giant will continue to hire in “key strategic areas”.

Satya Nadella adds that “benefit-eligible U.S. employees will receive benefits including above-market severance, six months of continued medical coverage, the ability to continue acquiring company stock for six months, career transition services and 60 days notice before termination, whether or not such notice is legally required. Outside the United States, compensation will be aligned with the labor laws of each country”. According to him, “Microsoft will emerge from this situation stronger and more competitive”.

As a reminder, Microsoft has already laid off just under 1,000 employees in October 2022, a few days before the publication of its quarterly report on profits for the fiscal year 2023. Last July, Microsoft also declared to have laid off 1 % of its global workforce.

This new announcement of impending layoffs comes before Microsoft releases its fiscal 2023 second quarter financial results. Windows licensing revenue was down 15% in the prior quarter and Microsoft expects further decline because PC sales are collapsing, particularly due to inflation.

However, Microsoft forecasts an annual growth of 2% of its turnover in this second fiscal quarter of 2023. This represents between 52.35 and 53.35 billion dollars in revenue.

Leave a Comment