Microsoft will cut 5% of its workforce this week as the company prepares for the most challenging two years in the tech industry ahead. It is looking at reducing its 220,000-employee workforce by over 10,000 people worldwide. The layoffs are expected to take place this week ahead of the company’s quarterly earnings report next week.
Bloomberg reports that the 2023 layoff is expected to be much larger than last year’s 1% cut. This year, Microsoft will lay off 5% of its workforce in an attempt to cut back costs.
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The company recently rolled out changes to its working environments. One change was to allow unlimited time off in certain divisions.
The layoffs come after Microsoft CEO Satya Nadella commented about the company’s future. During an interview with CNBC Nadella warned of two years of challenges ahead for the tech industry. Nadella admitted that Microsoft wasn’t “immune to the global changes” saying that companies need to be prepared for the future.
“The next two years are probably going to be the most challenging. We did have a lot of acceleration during the pandemic, and there’s some amount of normalization of that demand. And on top of it, there is a real recession in some parts of the world.”
At the moment it isn’t clear where these cuts are going to take place. Last year, Microsoft mostly laid off employees in its customer service, partner and consulting solutions.