The latest rumors indicate that we will witness some Microsoft layoffs soon. The company is reportedly planning to announce significant job cuts tomorrow, with sources indicating that thousands of roles will be eliminated. According to Sky News, the company is considering cutting around 5% of its workforce, which would amount to more than 10,000 layoffs among its more than 220,000 employees.
However, it is yet to be confirmed whether this number is accurate, with some analysts suggesting that the final figure may be higher. Additionally, it is currently unclear if any positions based in the UK will be affected by these cuts.
Microsoft layoffs 2023: Microsoft job cuts explained
Microsoft, a company that has invested heavily in cloud computing and currently has a market value of $1.78tn, is set to announce its second-quarter earnings next week.
Before the company’s CEO, Satya Nadella, updates investors on its financial performance on January 24, an announcement regarding headcount reductions is expected to be made, if it goes through.
According to The Verge, the company is expected to announce Microsoft layoffs on Wednesday before their quarterly earnings next week, although Sky News did not specify an exact date.
According to Bloomberg, the company is set to announce a significant number of Microsoft layoffs in their engineering divisions tomorrow. These cuts are reported to be larger in scale than the 1% reduction in workforce that the company made last year. The previous cuts mainly affected positions in the consulting and customer and partner solutions departments.
Microsoft is the most recent major IT firm to experience economic struggle, and the job losses will occur just days after Microsoft adopted a new unlimited vacation policy. Unused vacation balances for Microsoft employees will be paid out all at once in April, and supervisors will have limitless “Discretionary Time Off” to approve.
In a memo viewed by The Verge, Kathleen Hogan, Microsoft’s chief people officer, made the revelation in an email to staff members. All salaried US employees will be eligible for Microsoft’s unlimited vacation time, which the company is referring to as “Discretionary Time Off.”
“How, when, and where we do our jobs has dramatically changed. And as we’ve transformed, modernizing our vacation policy to a more flexible model was a natural next step,” stated Hogan in the internal memo.
The Microsoft layoffs also occur just a few weeks after CEO Satya Nadella issued a warning about the two years of difficulties the IT sector would face. In a CNBC interview, Nadella acknowledged that Microsoft wasn’t “immune to the global shifts” and stressed the importance of efficiency for computer firms.
“The next two years are probably going to be the most challenging. We did have a lot of acceleration during the pandemic, and there’s some amount of normalization of that demand. And on top of it, there is a real recession in some parts of the world,” stated Nadella.
Recently, Amazon laid off more than 18.000 employees…
