Due to various economic factors, it looks like Microsoft’s cost cutting by laying off a whopping 10,000 of its employees. Microsoft’s layoffs are set to begin Wednesday, with the goal of completing the process around March. The technology giant had about 221,000 employees by the end of June last year.
Several factors led to the final decision to lay off so many employees. According to Microsoft CEO Satya Nadella, the company is looking to prepare for an uncertain economy.
“These are the kinds of tough choices we’ve made throughout our 47-year history to remain a successful company in this industry, which is unforgiving to anyone who doesn’t adapt to platform changes.”
Aside from a potential economic downturn, Microsoft has also bitten off a bit more than it could chew by hiring more than 75,000 people since 2019, around the time the COVID pandemic hit. Microsoft was not the only company to hire more, and as the need for technical talent decreased, so did the need for tens of thousands of additional workers.
It is worth noting that Microsoft is not just trying to cut costs. Instead, the company is currently trying to invest in other technologies and projects instead. The technology giant is investing in OpenAI, the company behind the ChatGPT AI system, and in the field of video games, it is interested in acquiring Activision Blizzard in a $69 billion deal.
Source: THe is the New York Times