Microsoft is planning more big job cuts, according to reports

Microsoft has confirmed that it is making a big spherical of layoffs, with 10,000 staff set to lose their jobs. 

Rumors of the job cuts circulated over evening, however now the big tech big has confirmed the transfer in a memo despatched to workers. 

The cuts come as the corporate appears to “align our cost structure with our revenue and where we see customer demand,” Microsoft CEO Satya Nadella mentioned within the memo despatched to Microsoft staff. 

“We know this is a challenging time for each person impacted. The senior leadership team and I are committed that as we go through this process, we will do so in the most thoughtful and transparent way possible,” he added. 

The determine represents slightly below 5 % of Microsoft’s complete headcount of over 222,000 workers. Some staff might be informed that they’re going to be shedding their jobs right now, with the remaining redundancies being made by March. 

Also: Why job cuts at big tech do not at all times present the complete image

The memo factors in the direction of “times of significant change,” elements of the world being in recession, and the rise of recent applied sciences as among the causes for the redundancies. 

“These decisions are difficult, but necessary. They are especially difficult because they impact people and people’s lives — our colleagues and friends,” mentioned Nadella. 

The memo additionally reveals that Microsoft is taking a $1.2 billion cost in Q2 associated to severance prices, modifications to its {hardware} portfolio, and the price of lease consolidation because it makes an attempt to create “higher density” throughout workspaces. 

Microsoft says it should supply “full support” to staff who’re being laid off, offering severance pay, six months of healthcare protection, assist with profession transition and 60 days of discover interval, whether or not or not it is legally required. 

“I want to extend my deepest thanks and gratitude to everyone who has contributed to Microsoft up to this point and to all of you who will continue to contribute as we chart our path ahead,” mentioned Nadella. 

Also: Developers really feel safe of their jobs, however they’re nonetheless desirous about quitting 

“Thank you for the focus, dedication, and resilience you demonstrate for Microsoft and our customers and partners each day,” he concluded. 

Sky News reported on the potential job cuts earlier right now.

Microsoft’s job cuts follows cuts at Amazon, which introduced 18,000 job cuts this month, and Salesforce, which reduce 8,000 roles. Both firms had employed aggressively within the early phases of the pandemic. Facebook father or mother Meta additionally slashed 11,000 roles in November — its first ever reductions since Facebook launched in 2004. And Twitter below Elon Musk has reduce its workforce by over 3,000, representing half of its former headcount. 

Microsoft Cloud and Azure has been amongst Microsoft’s top-performing enterprise unit in recent times, constantly seeing round 30% progress in revenues. However, Windows revenues have been hit by a robust US greenback and shrinking PC gross sales as customers and companies tighten their belts amid excessive inflation. Windows OEM revenues declined 15% final quarter.  

Thanks to ChatGPT capturing the world’s consideration, one brilliant spot for Microsoft is its $1 billion funding in OpenAI, which has translated into the now usually obtainable Azure OpenAI Service. Microsoft will supply ChatGPT to prospects as well as to entry to GPT-3.5, Codex, and DALL•E 2. 

Also: What is ChatGPT and why does it matter? 

Microsoft is reportedly in talks to take a $10 billion stake in OpenAI, which might give it a 49% share of the analysis and improvement firm valued at $29 billion.  

The 10,000 jobs in danger at Microsoft aren’t its greatest cuts. In July 2014, when it had a headcount of 130,000, the corporate reduce its workforce by 18,000, of which 12,500 have been from the Nokia gadgets group.