Microsoft to cut 10,000 jobs as tech layoffs intensify

According to a report, Microsoft plans to cut about 5% of its workforce, or about 11,000 roles.

January 18, 2023 08:35 am | Updated 08:26 pm IST

Representational image of a Microsoft office building

Representational image of a Microsoft office building | Photo Credit: Reuters

Microsoft Corp said on Wednesday it would cut 10,000 jobs by the end of the third quarter of fiscal 2023, the latest sign that layoffs were accelerating in the U.S. technology sector as companies brace for an economic downturn.

The layoffs and costs related to hardware-portfolio and other changes will result in a charge of $1.2 billion in the second quarter of fiscal 2023, representing a negative impact of 12 cents on per share profit, Microsoft said.

In a note to staff, shared with Reuters, Microsoft Chief Executive Satya Nadella said customers wanted to “optimize their digital spend to do more with less” and “exercise caution as some parts of the world are in a recession and other parts are anticipating one.”

Also Read | Data | Layoffs by IT firms in the U.S. will greatly impact H-1B workers from India 

The news of layoffs, reported by media publications on Tuesday, follows some reductions last year.

Microsoft said in July last year that a small number of roles had been eliminated, while news site Axios in October reported that the company had laid off under 1,000 employees across several divisions.

The Satya Nadella-led firm is also grappling with a slump in the personal computer market after a pandemic boom fizzled out, leaving little demand for its Windows and accompanying software. 

Top News Today

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.