big layoffs at microsoft

Microsoft announced a huge layoff today, cutting 10000 positions. Satya Nadella said that Microsoft had been impacted by changes in the global economy.

“We’re living through times of significant change, and as I meet with customers and partners, a few things are clear,” he wrote. “First, 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.”

With about 221000 positions globally, this is a 5% reduction. Microsoft will incur a 1.2 billion USD cost in severance payouts and other procedures.

Microsoft has an earnings call on January 24th and it will be interesting to see how they are doing. They continue to lead the tech industry on AI and are on par with AWS on cloud infrastructure. Their Windows, Office and XBox revenue streams are also significant.