Microsoft CEO Satya Nadella speaks at the company’s Ignite Spotlight event on November 15, 2022 in Seoul.
Seongjoon Cho | Bloomberg | Good pictures
Microsoft The software maker said on Wednesday it would cut 10,000 jobs through March 31 as it braces for slower revenue growth. The company also takes a $1.2 billion charge.
letters, AmazonAnd Sales force Technology companies are among them A small number of people In recent weeks. The contraction comes as demand for cloud-computing and collaboration services surged as companies, government agencies and schools encouraged remote work to mitigate the impact of Covid.
Rising prices have prompted companies to be more cautious about technology spending, hurting the prospects for tech stocks outperforming other market sectors year-over-year. Now Microsoft and its peers are taking stock. Microsoft in July said It cut less than 1% of its workforce in October Confident Additional job cuts reportedly affect fewer than 1,000 workers.
“I believe Microsoft will emerge from this stronger and more competitive environment,” CEO Satya Nadella announced in a memo to employees. On the Microsoft website. The move will reduce Microsoft’s workforce by less than 5%, and some employees will find out this week whether they will lose their jobs, he wrote.
Microsoft shares rose modestly at the US Open following the announcement.
Employees in the U.S. who are eligible for benefits, above-market severance, health care and stock sales will receive six months and 60 days’ notice, Nadella wrote.
Nadella reiterated the trends in the business environment that he has described in recent months.
“As we’ve seen customers accelerate their digital spending during the pandemic, we’re now seeing them leverage digital spending to do more with less,” he wrote. “We’re seeing companies in every industry and geographies acting cautiously as some parts of the world are in recession, while other parts are anticipating one.”
Earlier this month, Nadella hinted that the company might have to make changes.
“For us as a global company, we’re not going to be immune to what’s happening in the macro,” he said in a statement. Interview With CNBC-TV18. “We have to get our own kind of operational focus on making sure that our expenses are in line with our revenue growth.”
Microsoft has was invited Revenue growth of 2% in the fiscal second quarter, which would be the slowest rate since 2016.
Big layoffs aren’t an annual exercise at 47-year-old Microsoft, but they do happen occasionally. Microsoft in 2017 Thousands of employees were laid off In a vast restructuring of its sales unit. In 2014, following Microsoft’s acquisition of Nokia’s devices and services business 18,000 reduced People.
Nadella wrote that the fee is related to the cost of severance, hardware and lease integration.
“Each of us and every team in the organization must raise the bar and outperform the competition to deliver meaningful innovation that truly benefits customers, communities and nations,” Nadella wrote. “If we deliver this, we will emerge stronger and thrive long into the future; it’s that simple.”
See: Microsoft’s OpenAI investment won’t help it compete with Google Search, says tech analyst
