Microsoft

Microsoft Plans 10,000 Job Cuts, To Take $1.2 Billion Charge · Move will reduce second-quarter EPS by 12 cents, company says · Nadella says company will hire in ' ...

and is forecast to post its slowest revenue increase in six years. 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 reportedly set to cut thousands of jobs worldwide, becoming the latest tech giant after Amazon, Meta and Twitter to announce mass layoffs in.

The company had stockholder equity of $166.5bn. Sky News reports, citing sources, that Microsoft plans to cut around 5% of its global workforce, or around 11,000 jobs. Of the 221,000 Microsoft staff worldwide as of last June, 122,000 were based in the US and a further 99,000 were based internationally.

Microsoft said it's letting go of 10000 employees and taking a $1.2 billion charge as the software maker braces for slower top-line growth.

In 2014, following the acquisition of Nokia's devices and services business, Microsoft [cut 18,000](https://www.sec.gov/Archives/edgar/data/789019/000119312514271285/d758424dex991.htm) people. "If we deliver on this, we will emerge stronger and thrive long into the future; it's as simple as that." [Alphabet](/quotes/GOOGL/), [ Amazon](/quotes/AMZN/) and [Salesforce](/quotes/CRM/) are among the technology companies that have [lowered head count](https://www.cnbc.com/2023/01/04/amazon-says-it-will-cut-over-18000-jobs-more-than-initially-planned.html) in recent weeks. "We will have to also get our own sort of operational focus on making sure our expenses are in line with our revenue growth." "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," he wrote. Employees in the U.S. The move will reduce Microsoft's head count by less than 5%, and some employees will find out this week if they're losing their jobs, he wrote. In July Microsoft The contraction comes after demand for cloud computing and collaboration services picked up as enterprises, government agencies and schools encouraged remote work to reduce [Covid](https://www.cnbc.com/coronavirus/) exposure. Now Microsoft and its peers are taking stock. [Microsoft](/quotes/MSFT/) said Wednesday that it's letting go of 10,000 employees through March 31 as the software maker braces for slower revenue growth. [said](https://www.cnbc.com/2022/07/12/microsoft-cuts-small-percentage-of-employees-as-new-fiscal-year-begins.html) it will trim less than 1% of employees, and in October it [confirmed](https://www.cnbc.com/2022/10/18/microsoft-confirms-job-cuts-after-calling-for-growth-to-slow.html) an additional round of job cuts that reportedly affected fewer than 1,000 workers.

Chief executive Satya Nadella says cuts will cost $1.2bn as tech firms scale back from Covid growth.

In the case of Twitter, that was moving to "a model away from pure advertising", and for Facebook he pointed to its pursuit of the metaverse. The latest 10,000 are expected to be completed by the end of the third quarter of 2023. But Jason Wong, a tech industry analyst with consultants Gartner, warned against assuming redundancies in "enterprise" businesses like Microsoft and Amazon happened for the same reasons as the cuts by big social media firms, some of which had faced additional challenges because of "where they intend to take the business". At the start of this year, Amazon announced that it planned to cut more than 18,000 jobs because of "the uncertain economy" and rapid hiring during the pandemic. Microsoft will cut 10,000 jobs in the latest round of staff redundancies to hit the tech industry. That's not to say the sector is stagnating, though - reports suggest Microsoft is considering a $10bn investment in the company behind ChatGPT, the chatbot that's not only captivated the millions of people who have tried it out but is also predicted by some experts to be the future of search.

Amazon, Salesforce and Goldman Sachs have also announced cuts during a brutal January for corporate workers.

The company began notifying affected workers on Wednesday, and plans to complete the layoffs by the Spring, according to the note. The staff reduction announcement on Wednesday comes a week after the tech giant said it would be allowing U.S. One area Microsoft has been focusing on is artificial intelligence. The cuts represent a little less than 5% of Microsoft's global workforce of 221,000 employees. Investment analyst firm Wedbush Securities on Wednesday described the recent spate of layoffs in the tech sector as "a rip off the Band-aid moment to preserve margins and cut costs." Microsoft CEO Satya Nadella said the company is "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," in a note to employees posted online and in a

Microsoft Corp. Chief Executive Officer Satya Nadella said the technology industry must learn to be efficient as demand slows.

Microsoft has become the latest large tech company to reverse a pandemic-era recruitment spree in the face of a slowing economy, as it announced plans to ...

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Microsoft will take a $1.2 billion charge related to severance costs, hardware portfolio changes, and lease consolidation costs.

According to [the email](https://www.sec.gov/Archives/edgar/data/789019/000119312523009934/d447690dex991.htm), those 10,000 jobs are no longer needed to meet the cloud hyperscaler’s long-term goals or customer demand in light of the continued advancement of [artificial intelligence (AI)](https://www.sdxcentral.com/artificial-intelligence/definitions/what-is-artificial-intelligence/) and shuttered [enterprise](https://www.sdxcentral.com/resources/glossary/enterprise/) spending caused by economic uncertainty. “It’s important to note that while we are eliminating roles in some areas, we will continue to hire in key strategic areas.” Salesforce’s layoffs will impact more than 7,000 employees at the cloud services giant and also includes real estate and office divestitures. “We are committed to ensuring all those whose roles are eliminated have our full support during these transitions,” he explained, citing extended health care coverage, career transitions services, and 60-days notice for U.S.-benefit-eligible employees. [Salesforce](https://www.sdxcentral.com/directory/salesforce/) and [Amazon](https://www.sdxcentral.com/directory/amazon/) [earlier this month](https://www.sdxcentral.com/articles/news/salesforce-amazon-slash-jobs/2023/01/). [wrote in a letter](https://www.sec.gov/Archives/edgar/data/1108524/000110852423000003/ex991-lettertoemployees.htm) to employees. [explained](https://www.aboutamazon.com/news/company-news/update-from-ceo-andy-jassy-on-role-eliminations) in a note shared with employees that “this year’s review has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years.” He added the cuts would impact more than 18,000 employees, building on the 10,000 [job cuts announced](https://www.aboutamazon.com/news/company-news/a-note-from-ceo-andy-jassy-about-role-eliminations) last November. [cloud provider](https://www.sdxcentral.com/cloud/definitions/what-is-cloud/what-are-cloud-service-providers/) plans to “align our cost structure with our revenue and where we see customer demand,” the CEO wrote. [digital transformation](https://www.sdxcentral.com/industry/career/skills/digital-workforce-transformation-isnt-bad/) budgets, but current economic environments are pushing organizations across industries and geographies to “exercise caution” in terms of tech spending. [invested $1 billion in 2019](https://www.sdxcentral.com/articles/news/microsoft-invests-1b-in-openai-to-build-ai-supercomputing-platform/2019/07/) in OpenAI – the company behind the viral AI natural language processing model ChatGPT – expects the next wave of computing will be “born with advances in AI,” Nadella wrote to employees, suggesting automation and AI are primed to limit Microsoft’s need for human headcount. “We will treat our people with dignity and respect, and act transparently.” [Microsoft](https://www.sdxcentral.com/directory/microsoft/) CEO Satya Nadella sent an email to the company’s nearly quarter-million employees today to explain why the [cloud](https://www.sdxcentral.com/cloud/definitions/what-is-cloud/) provider is [shelling out $1.2 billion](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000789019/000119312523009934/d447690d8k.htm) to lay off slightly less than 5% of its total workforce.

MICROSOFT on Wednesday (Jan 18) said it would eliminate 10000 jobs and take a US$1.2 billion charge as its cloud-computing customers dissect their spending ...