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After Twitter, Meta and Amazon, Microsoft will part ways with around 10,000 employees


The company invokes “economic conditions” and a change in consumer habits, who spend less than during the pandemic

Another blow for tech.

The American computer giant Microsoft announced on Wednesday that it would lay off around 10,000 employees by the end of March, further shaking a sector already affected by several major social plans.

The company, which is laying off a little less than 5% of its workforce, also plans to modify its portfolio of IT equipment and reduce the number of workspaces.

These savings measures will represent a charge of 1.2 billion dollars in the accounts for the staggered second quarter that the group is due to unveil on January 24.

Read also“It’s terrible”: on Twitter, employees tell of the massive layoffs

Its turnover is expected to increase by only 2.7% over one year, a very low rate for the IT giant accustomed to double-digit growth.

This loss of speed is linked, according to the group, to “economic conditions” and changes in customer priorities.

In a letter to employees made public, Microsoft boss Satya Nadella explains that while "customers have accelerated their IT spending during the pandemic", they are now looking to optimize it to "do more with less".

Companies around the world are also showing "cautiousness" in the face of recession risks as advances in artificial intelligence shake up the sector, he said.

Two previous dismissals

Microsoft had initially resisted thanks to the dynamism of remote computing (cloud), but companies have tended to limit their investments for several months for fear of a deterioration in the economy.

The tech giant had already carried out two rounds of layoffs, one in July, which according to the company concerned less than 1% of the workforce.

The second took place in October and targeted less than 1,000 people, according to the Axios news site.

Microsoft, which according to its site currently has 221,000 employees worldwide, had hired 75,000 since 2019, recalls Dan Ives, from Wedbush, in a note.

These dismissals are not a “surprise” in his eyes.

The group “will continue to spend strategically on cloud, mergers and acquisitions (Activision), betting on innovation (ChatGPT), and continue to accelerate on innovation while reducing non-strategic areas (hardware, etc. ),” the analyst predicted.

Other major groups in the tech sector have announced workforce reductions in recent months, such as Amazon and Salesforce, which announced in early January the layoffs of approximately 18,000 and 8,000 employees respectively.

Meta, the parent company of Facebook and Instagram, also launched a social plan in November affecting 11,000 jobs.

Billionaire Elon Musk, who bought Twitter last October, was quick to lay off nearly 50% of the company's workforce at the blue bird.

Source: leparis

All news articles on 2023-01-18

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