NICKIE LOUISE FROM TECH STARTUPS
While the tech stocks have had a great year so far, the same cannot be said about tech employees as they face more job cuts. In a surprised announcement on Monday, Microsoft confirmed that it is eliminating additional jobs in a new round of layoffs as the threat of job cuts looms over the sector. The announcement comes just a week after the start of its fiscal year.
The recent layoff affected jobs in sales and customer support. According to a report from CNBC, Microsoft Salespeople and customer success representatives posted messages on social networks to announce they lost their jobs. The Redmond-based tech giant also filed a notice Monday saying it would cut 276 people in its home state of Washington. 66 of those are virtual.
The cuts are in addition to the downsizing we reported back in January when Microsoft announced it would cut 10,000 jobs. In a memo to Microsoft employees, CEO Satya Nadella said the layoffs, affecting less than 5% of the workforce, would conclude by the end of March, with notifications beginning Wednesday. Nadella added that customers wanted to “optimize their digital spend to do more with less” and “exercise caution as some parts of the world are in a recession and other parts are anticipating one.”
“We’re living through times of significant change, and as I meet with customers and partners, a few things are clear.”
Microsoft employs more than 220,000 people globally, including roughly 122,000 people in the U.S., according to its corporate website. However, Microsoft declined to confirm Sky’s report, telling multiple media outlets it doesn’t comment “on rumor.”
Microsoft is not alone. Tech giants including Meta, Google’s Alphabet, and Nvidia have all taken measures to rein in spending. Other companies like Coinbase, Shopify, Netflix, and Twilio have also announced layoffs. In March, Facebook-parent company Meta announced it would cut 10,000 jobs, just four months after it let go of 11,000 employees, making the social giant the first Big Tech company to announce a second round of mass layoffs.
The global economic downturn that started in the second quarter of 2022 is beginning to have a major impact on tech companies. About 844 tech companies have let go of 216, 364 workers, according to Layoffs.FYI, a site that has been tracking all tech layoffs using data compiled from public reports.
A Microsoft spokesperson declined to specify the number of cuts in the latest round. “Organizational and workforce adjustments are a necessary and regular part of managing our business,” the spokesperson said in an email. “We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners.”
