Jan 18, 2023 22:16
Information giant Microsoft announced that it will lay off 10,000 employees by the end of March due to unclear economic prospects and changing customer priorities, which will destabilize the technology sector, which was already affected by several large social plans.
The company, which will spend less than 5% of its workforce, plans to adjust its IT equipment portfolio and reduce the number of workplaces.
“These are the tough choices we’ve made over our 47-year history to remain an important company in a ruthless industry that doesn’t adapt to change,” Microsoft CEO Satya Nadella said in a letter to employees.
The measures will represent a $1.2 billion saving in second-quarter accounts, which the group will publish on Jan. 24.
Nadella noted in the letter that while customers “accelerated their IT spending during the pandemic” they are now seeking to optimize it to “do more with less.”
He also said companies around the world are “cautious” about recession risks, as advances in artificial intelligence shake up the sector.
Asked Wednesday about layoffs during a speech at the Davos Forum, Satya Nadella stated that this was due to the effects of inflation on economic growth and concluded that “no one can defy the laws of gravity”.
Source: AFP
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