Following some rumors, Microsoft confirmed this morning that it will lay off a significant number of employees in the coming months. Satya Nadella, president and CEO of the company, revealed that the cut will be approximately 5% of its workforce.
Microsoft has about 220,000 employees, so about 10,000 characters will lose their jobs. The company will eliminate all those positions at the end of the third quarter of fiscal year 2023, which ends on March 31. Likewise, the company plans strategic changes to face the current economic panorama.
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Why will Microsoft lay off thousands of employees?
According to Nadella, the downsizing and the disappearance of thousands of positions is due to an adjustment in its strategy to deal with “macroeconomic conditions and changing customer priorities.”
The executive clarified that Microsoft will continue hiring personnel for various important areas. However, he did not clarify which sectors of the company will be affected by the layoffs. Reports speculate that the most affected areas will be the engineering divisions.
As of this writing, there are no concrete details on whether the layoffs will affect Xbox. We will update the note as soon as we have information about it.
“Today, we are making changes that will result in reducing our overall workforce by 10,000 jobs through the end of the third quarter of FY23. This represents less than 5% of our total employee base, with some notifications happening. today. It is important to note that while we are eliminating roles in some areas, we will continue to hire in key strategic areas. We know that this is a challenging time for every person affected. The senior leadership team and I are committed that as we move through this process, we will do so in as thoughtful and transparent a manner as possible,” Nadella said.
On the other hand, the manager confirmed that they will support the affected employees with everything possible. To do this, they will offer them compensation that is higher than the market, medical insurance for 6 months and other facilities so that the transition to another job is more stable.
“These are the kinds of tough decisions we’ve made over our 47-year history to remain a significant company in this industry that doesn’t forgive anyone who doesn’t adapt to platform changes,” Nadella added.
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