In a fresh round of mass layoffs, Microsoft is set to let go of thousands of employees. As per media reports, the tech giant’s move to axe as many as 11,000 jobs comes amid grim global economic conditions. The layoffs will include some roles affected in the engineering and HR departments, globally.
It would be the latest in a slew of layoffs in the global technology sector as companies including Amazon, Google, and Meta have already laid off thousands of employees in the midst of worsening global economic conditions.
“From a big picture perspective, another pending round of layoffs at Microsoft suggests the environment is not improving, and likely continues to worsen,” Morningstar analyst Dan Romanoff said. Meanwhile, the U.K. broadcaster Sky News reported, that Microsoft plans to cut about 5% of its workforce which is close to about 11,000 roles.
Earlier, in October 2022, the tech giant let go of around 1,000 employees across departments. Microsoft employs 221,000 people worldwide with around 122,000 people in the United States.
On Wednesday, Speaking at the World Economic Forum (WEF) in Davos, Switzerland Microsoft CEO Satya Nadella said that the company was not immune to a weaker global economy. “No one can defy gravity and gravity here is inflation-adjusted economic growth,” he told WEF founder Klaus Schwab in a live-streamed discussion.
Just a few months earlier, Amazon announced that it plans to lay off 18,000 people whereas Salesforce said it is cutting 10% of its staff. Facebook parent Meta also made 11,000 job cuts, the largest in the company’s history.