Microsoft is the latest tech giant to significantly reduce its headcount, with the company announcing today that it will lay off 10,000 workers over the next few months. It’s getting harder and harder to maintain a sense of security while working in this field.
A blog post(Opens in a new window) published on Wednesday(Opens in a new window) also informed Microsoft employees of the company’s intention to lay off thousands of workers. CEO Satya Nadella wrote that the company needed to “deliver results on an ongoing basis, while investing in our long-term opportunity” because of falling consumer spending following a boom during the pandemic.
While we’re eliminating roles in some areas, Nadella emphasised that the company will keep hiring for positions in “key strategic areas.” The CEO has acknowledged the growing interest in and progress in artificial intelligence as one of these potential areas of focus. Similarly, OpenAI, the firm responsible for the widely used AI chatbot ChatGPT, is the subject of rumours that Microsoft is considering a multibillion-dollar investment.
However, Microsoft’s plans to hire in the future will be cold comfort to the company’s current employees who are being laid off. In the middle of 2022, Microsoft had approximately 221,000 full-time workers, with 122,000 located in the United States and 99,000 located elsewhere. The company has announced new layoffs that will reduce employment by about 5%.
Twitter’s firings are the axe that slashes the deepest. Take a look at these additional bleeding-edge areas in which big tech is falling short.
The only silver lining is that Microsoft won’t be making all of its layoffs at once like Twitter. Starting today and continuing through March, the company will begin laying off employees, giving them time to make preparations in case they are among the unlucky 5 percent.
It’s tough to make these choices, but Nadella said they’re essential. “The fact that they have real, tangible effects on real people — our coworkers and friends — makes them all the more challenging. Those whose jobs are being eliminated can count on our undivided attention and assistance as they make the necessary adjustments.”
U.S. benefit-eligible workers who are let off would receive “above-market severance pay, continuous healthcare coverage for six months, continued vesting of stock awards for six months, and career transition services,” in addition to the 60 days’ notice they were guaranteed before their dismissal. Anyone working for us outside the United States will receive the benefits to which they are entitled under local law.
The company itself reportedly reduced its workforce by 1,000 in October, while in September it announced plans to add the same number of employees to its Chinese operations.