Microsoft is expected to announce the cuts today when it reports for the fiscal quarter ended Dec. 31, 2022.
Updated [18:15]: Microsoft has officially confirmed the cuts
11,000 employees is about 5% of Microsoft’s total workforce. According to Bloomberg, most of the cuts will affect engineering departments.
It is interesting that the cuts at Microsoft will take place against the background of the announcement of an unlimited vacation policy. From January 16, all company employees will be able to take unlimited vacation, including new employees. Microsoft will continue to offer 10 corporate days off per year, as well as time off due to illness, jury duty or bereavement. Employees with unused vacations will receive a one-time payment in April.
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Microsoft employees in the USA will receive unlimited vacations from January 16 – sick leave and vacations will not be canceled in the corporation
In total, Microsoft employed more than 220,000 people at the beginning of the year. In 2022, 1% of the total number of personnel was laid off from the company.
It’s just the latest example of large-scale layoffs among tech companies struggling to weather a tough global economy. Earlier, Amazon announced the layoff of 18,000 employees – about 5% of the company’s entire corporate staff and 1.2% of the total number of employees (1.5 million people as of September 2022).
Meta also cut more than 11,000 jobs, or 13% of its workforce. On January 4, the American company, the developer of the Salesforce CRM system of the same name, also announced that it was laying off 10% of its workforce.
The layoffs at Microsoft come just weeks after CEO Satya Nadella warned that the tech industry is in for a challenging two years ahead. In an interview with CNBC, he admitted that the corporation is not immune to global changes.
“The next two years will probably be the most difficult. We had a significant acceleration during the pandemic, and there is a normalization of that demand. In addition, there is a real recession in some parts of the world,” Nadella said.
Previously, Microsoft quietly laid off almost 1,000 employees: the cuts even affected the teams creating technologies for the state and the Xbox gaming division.
Source: Bloomberg, The Verge, Aroged
