The CEO of Microsoft has recently announced plans of cutting up to 10,000 jobs across its various departments and firms that it owns. This decision extends to outside of its core areas of business as it shifts its focus. So here are all the details.
CEO Satya Nadella has stated that the current economic conditions have caused the American tech giant to make “hard choices.” Although, he further added that the company will also be shifting focus by investing in “strategic areas” in order to remain competitive in the market. While 10,000 people being laid off is a large figure, this apparently doesn’t even account for even 5 percent of Microsoft’s total workforce.
This news was revealed through a company wide memo in which Nadella said that reduced consumer spending because of the Coronavirus pandemic isn’t as extreme as before. However, many parts of the world are still facing economic recession at the moment. So, the layoffs are unavoidable to align its cost structures and projected revenue. Furthermore, despite 10,000 jobs being cut, the company will also continue to hire new resources as and when required.
Interestingly enough, Jason Schreier also reported on Microsoft having to downsize in its gaming division as well. This includes Xbox, Bethesda, and reportedly even 343 Industries as well. Meaning, that the job cuts are across the board and not specific to any department as of right now. So we can expect some of its other operations to also be impacted by the massive layoff.
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