Microsoft Plans 10,000 Job Cuts, To Take $1.2 Billion Charge
Microsoft Corp. said it plans to cut 10,000 jobs, or about 5% of its workforce, taking steps to cope with an increasingly bleak outlook that has now bruised many of the technology industry's biggest names.
The company will take a $1.2 billion charge in the second fiscal quarter related to the move, which will shave 12 cents off of earnings per share, the company said in a corporate filing. The layoffs come as the software giant said it's seeing customers exercise caution, with some parts of the world in recession and others heading toward one. Microsoft is scheduled to report results on Jan. 24. and is forecast to post its slowest revenue increase in six years.
Speaking earlier in the day before the cuts were announced, Chief Executive Officer Satya Nadella noted the tech industry is going through a period of slowdown 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 joins the ranks of other major technology companies that have announced job cuts in the thousands in the past few months. Cloud rival and Seattle-area neighbor Amazon. com Inc. is set to begin a round of layoffs Wednesday, ultimately affecting more than 18,000 employees in the largest job cull in its history. Facebook parent Meta announced widespread job cuts last fall, and beleaguered social network Twitter Inc. has slashed about half its workforce. Corporate cloud-software maker Salesforce laid off about 10% of workers earlier
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