Tech giant Microsoft said it was cutting 10,000 jobs, representing less than 5% of its global workforce, in an effort to cut costs amid signs of an economic slowdown.
Microsoft CEO Satya Nadella announced the layoffs in a memo to employees Wednesday, which the company posted online. The job cuts will take place by the end of Microsoft’s third quarter of 2023, which ends in March. Some employees are being notified today that they are losing their jobs, Nadella wrote.
While Microsoft saw customers accelerate their digital spending during the pandemic, according to Nadella, “we’re now seeing them optimize their digital spending to do more with less.” He added that the company is “looking at companies in every industry and geography because some parts of the world are in a recession and other parts are anticipating one.”
Nadella wrote that while Microsoft is eliminating roles in some areas, “we will continue to hire in key strategic areas. We know this is a challenging time for everyone affected. The senior leadership team and I are committed to going through this process in the most thoughtful and transparent way possible.”