Microsoft laying off 10,000 employees from overall workforce
Microsoft has confirmed it intends to make 10,000 layoffs by the end of Q3, FY23. The news comes with the Xbox maker pursuing a mammoth $68.7 billion acquisition of Activision Blizzard.
Microsoft said the job cuts are signed to align its cost structure with its revenue targets and "where we see customer demand."
Addressing employees in a communication shared on the Microsoft blog, CEO Satya Nadella said the layoffs represent less than 5 percent of Microsoft's total employee base, and suggested the company must "exercise caution" as the world undergoes significant changes.
"We’re living through times of significant change, and as I meet with customers and partners, a few things are clear. First, as we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less," wrote Nadella.
"We’re also seeing organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one. At the same time, the next major wave of computing is being born with advances in AI, as we’re turning the world’s most advanced models into a new computing platform.
"This is the context in which we as a company must strive to deliver results on an ongoing basis, while investing in our long-term opportunity."
Nadella noted the company will continue to hire in key strategic areas, but added that some other roles will be eliminated. The company didn't specify which business areas will be affected by the layoffs, so it's currently unclear if staff within Microsoft's video game division will be hit by the wave of job cuts.
The Microsoft CEO described the layoffs as the kind of "hard choice" the company has made
Read more on gamedeveloper.com
