Microsoft‘s CEO Satya Nadella announced today via a blog post that the company would eliminate 10,000 positions. Unfortunately, the areas affected were not listed. So, we’re unsure which divisions were affected the most or if this was evenly spread throughout the entire workforce. Microsoft referred to this move as “a reduction of our overall workforce.”
Rumors are circulating that recently acquired studios like Bethesda were affected, but there’s no direct evidence at the time of writing this to tell for sure. We know that the cost-cutting measures will take place through until the third quarter of 2023’s fiscal year. MS added a silver lining: the company plans to hire personnel for “key strategic areas.” What areas are those? Unknown.
This decision, if Nadella is to be believed, is to help restructure the company to meet the changing demands of customers. The CEO says that the new habits of the customer base are employing result in them doing “more with less” regarding digital goods. I’m not sure what this means regarding MS products, but it could relate to people using Office 365 subscriptions on multiple computers rather than buying individual licenses for each.
As mentioned by the CEO, other possible culprits are a global recession and technological changes. Is the company falling behind in the market? Microsoft seems to be using these layoffs to prepare for dips in sales, and it must invest funds to stay relevant in the tech world.
Imagine reading a memo from the company you work for, and you reach the end of the following statement:
“Today, we are making changes that will result in the reduction of our overall workforce by 10,000 jobs through the end of FY23 Q3. This represents less than 5 percent of our total employee base, with some notifications happening today.”
I hope those employees MS laid off this week got their notices before this memo went live. According to Nadella, those being let go have 60 days’ notice, even in states or countries that do not require such “niceties.” While being fired from a large faceless corporation can be a pain, Microsoft is attempting to feign care for its soon-to-be ex-employees. Those made redundant will receive “above-market severance pay” and six months of healthcare coverage.[Source: Bloomberg] [Source: Microsoft]