Microsoft announced on Wednesday that it would be eliminating 10,000 jobs throughout the globe in response to the weakening of the global economy.
The Chief Executive Officer of Microsoft, Satya Nadella, stated that the business was working to realign its cost structure with its anticipated revenues and the areas in which consumer demand remained the highest.
“Just as we saw clients increase their digital expenditure during the pandemic, we’re now seeing them optimize their digital spend to do more with less,” he wrote. “As a result, we’re seeing them do more with less.” “We are also seeing businesses in every industry and area exercising caution as a result of the fact that some parts of the world are currently experiencing a recession while other sections are anticipating one.”
According to him, the layoffs will affect fewer than five percent of the software giant’s total workforce.
The announcement is the most recent in a string of layoffs of white-collar workers that have occurred as a direct result of inflation, higher interest rates, and a slower GDP, all of which have had an effect on consumer spending around the world. The Department of Commerce reported earlier on Wednesday that retail sales in the United States decreased by 1.1% in December, which was a larger decrease than what analysts expected.
Microsoft has joined the ranks of other digital titans, such as Alphabet, the parent company of Google, Amazon, Facebook, and Salesforce, who have all revealed plans to reduce their workforces in recent months.
Microsoft has projected that its sales will grow by 2% during the second quarter of its fiscal year, which would be the weakest rate since 2016.