Microsoft announced that it would lay off 10,000 employees in the coming months due to economic downturn and changing customer priorities.
The job cuts will affect slightly less than 5% of employees. The company will continue to hire in critical strategic areas, particularly in developing a “new computer platform” using artificial intelligence.
Microsoft CEO Satya Nadella said that the layoffs were in response to macroeconomic conditions and inflation affecting global economic growth.
The company stated in a filing that it had informed employees of the layoffs, some of which will begin immediately.
Additionally, it will make changes to its hardware portfolio and consolidate leased office locations.
As we saw customers accelerate their digital spending during the pandemic, we’re now seeing them optimize their digital spending to do more with less.
Satya Nadella-Microsoft CEO
Other tech companies such as Amazon, Salesforce, and Twitter have also announced job cuts recently.
The company also reported that the layoffs would result in a charge of $1.2 billion in their following results announcement.
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