Microsoft, one of the world’s leading technology companies, has announced plans to lay off 10,000 employees, or approximately 5% of its total workforce. The layoffs come as a result of challenging economic conditions and changes in consumer preferences.
In a statement, the company said that affected employees have been informed and that some of the layoffs will take effect immediately. In addition to the layoffs, Microsoft will also make changes to its hardware portfolio and integrate rental offices in order to save $1.2 billion.
Despite the layoffs, Microsoft CEO Satya Nadella remains optimistic about the company’s future. In a blog post for Microsoft employees, Nadella stated that the layoffs are necessary for the company to focus on short-term and long-term opportunities. He went on to say that Microsoft is well-positioned to continue delivering value to customers and shareholders.
This is the largest layoff in Microsoft’s history, with 1% of employees laid off last year during the coronavirus pandemic. The company has been facing pressure in its cloud unit Azure, and has seen a decline in sales of Windows and devices due to a prolonged decline in the personal computer market.
Overall, while the layoffs are unfortunate, they are a necessary step for Microsoft to adapt to the current economic climate and continue to innovate and grow in the future.