Multiple sources, including Bloomberg and Sky News, confirm that Microsoft will announce wide-ranging layoffs across “a number of engineering divisions.” Microsoft currently employs over 221,000 workers globally, and this newest round of cuts could see that figure slashed by 5 percent. If true, more than 10,000 workers will, unfortunately, lose their jobs.
The official announcement of the layoffs could come as early as Wednesday. Microsoft’s hiring exploded during the pandemic as more people worked from home and relied on the company’s software products and cloud services. In September 2022, CEO Satya Nadella confirmed that the company hired 50,000 people between 2020 and 2022. Now, as the global economy slows and fears of a lingering recession materialize, Microsoft is focused on cutting costs.
“We did have a lot of acceleration during the pandemic, and there’s some amount of normalization of that demand,” said in an interview with CNBC earlier this month. “[There are] clearly many, many challenges right now around the world. For us as a global company, we’re not going to be immune from what’s happening in the macro. We’ll also have to get our own operational focus to make sure our expenses are in line with our revenue growth.”