According to Microsoft CEO Satya Nadella at the Economic Forum (WEF) in Davos, Switzerland on Wednesday, not even Microsoft is immune to a weaker global economy. The company announced that they would be letting go of 10,000 employees, which represents less than 5% of the total workforce, to “severe costs”.
“No one can defy gravity and gravity here is inflation-adjusted economic growth,” he told WEF founder Klaus Schwab in a livestreamed discussion.
“These decisions are difficult, but necessary,” Nadella said. The change is set to be effective from the second quarter of the year.
“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,” he wrote. “We’re also seeing organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one.”
@jasonschreier reported that other divisions are also likely to suffer the staff cut.
Microsoft is laying off 10,000 people today, including in its gaming divisions such as Xbox and Bethesda. This mass layoff arrives exactly one year after Microsoft announced plans to purchase Activision Blizzard for $69 billion https://t.co/KGJ4wFtCvB— Jason Schreier (@jasonschreier) January 18, 2023
Inflation and recession fears have prompted many tech companies into making smarter choices regarding finances and resources.
Microsoft isn't the first tech company to make the decision – they are however the latest, and are now receiving heat from social media.
@tomwarren tweeted about Microsoft acquiring Activision Blizzard and exactly one year later, planning a lay off which may likely affect staff in the Activision Blizzard division.
on January 18th, 2022, Microsoft announced its intent to acquire Activision Blizzard for $68.7 billion— Tom Warren (@tomwarren) January 18, 2023
Exactly a year later and Microsoft is announcing some of its biggest layoffs ever, affecting 10,000 employees
“Really is disgusting. I don't know how anyone can support this acquisition when it's cost thousands of people their jobs. I feel sorry for them all. Hopefully, they can get back to work quickly,” @Swatt3118 replied.
“The acquisition isn’t costing any jobs, yet. The main point is things were very different a year ago, or even two years ago when Microsoft was hiring a lot of folks,” @tomwarren pointed out.
While the debate on whether or not Xbox was affected, @TWTHEREDDRAGON tweeted, “Xbox Division impacted by Microsoft layoffs.”
Xbox Division impacted by Microsoft layoffs. Been reading comments saying they weren't, but these are the same people who are wrong about everything— THE RED DRAGON (@TWTHEREDDRAGON) January 18, 2023
Feel for those losing their jobs while company rakes in billions in profits & spends billions buying other peoples work & workers pic.twitter.com/c06A1WgRj5
“Tech layoffs continue,” @tamisawyer wrote.
Tech layoffs continue.— Tami Sawyer (@tamisawyer) January 18, 2023
8,000 layoffs at Amazon today.
10,000 coming from Microsoft.
After a Record year of sales.
The world is not okay
“Recessions under capitalism are manufactured,” @joeywreck said, pointing out that Microsoft made “billion dollars” in revenue last year, yet still have recession concerns.
Microsoft reported nearly 200 billion dollars in revenue last year, their CEO made 54 million, and yet they have to fire 10,000 workers due to “economic uncertainty”. Recessions under capitalism are manufactured.— 🅹🅾️🅴🆈աrecκ ☭ (@joeywreck) January 18, 2023
One user highlighted the recent tech layoffs.
Layoffs Since October:— The Kobeissi Letter (@KobeissiLetter) January 18, 2023
1. Twitter: 75% of employees
2. Microsoft: 10,000+ employees
3. Amazon: 18,000+ employees
4. Goldman Sachs: 8% of employees
5. Meta: 13% of employees
6. Coinbase: 20% of employees
7. Intel: 20% of employees
8. Salesforce: 10% of employees
@klobrille said, “This is a painful step at a time when people really need a secure future more than ever.”
Microsoft is reducing its workforce by 10,000 people. To put things into perspective, this equals the entirety of Activision Blizzard King.— Klobrille (@klobrille) January 18, 2023
This is a painful step at a time when people really need a secure future more than ever.https://t.co/N6zChE7X8N
This article was produced and syndicated by Wealth of Geeks.