Microsoft, Amazon set to erase 28,000 jobs as tech slump deepens
Microsoft Corp. and Amazon.com Inc., two of the world's biggest companies, began cutting a total of 28,000 jobs on Wednesday in a post-pandemic reckoning that has left almost no tech name unscathed.
The software giant began notifying some of the 10,000 workers that will lose their jobs this quarter, while its Seattle-based neighbor and cloud rival Amazon started sending out emails to people in the US, Canada and Costa Rica who are among 18,000 people whose positions will be eliminated.
Both companies said the painful measures were necessary to offset slowing sales and a possible recession that has made customers more cautious. The tech industry benefitted during the pandemic from a surge in demand for computers, phones, software and goods ordered online, leading to a frenetic pace of hiring. Salesforce Inc. announced earlier this month that it would cut about 10% of its workforce after acknowledging that its workforce nearly tripled in the past four years. Facebook parent Meta Platforms Inc. announced widespread job cuts last fall, and beleaguered social network Twitter Inc. has slashed about half its workforce.
Speaking before the cuts were announced, Chief Executive Officer Satya Nadella noted the tech industry is going through a period of slowing growth and will need to adjust.
“During the pandemic there was rapid acceleration. I think we're going to go through a phase today where there is some amount of normalization in demand,” Nadella said in an interview at the World Economic Forum in Davos, Switzerland. “We will have to do more with less — we will have to show our own productivity gains with our own technology.”
Microsoft said it still plans to hire people in strategic, competitive areas, such as artificial
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