Microsoft said in July last year that a small number of roles had been eliminated, while news site Axios in October reported that the company had laid off under 1,000 employees across several divisions. It is also grappling with a slump in the personal computer market after a pandemic boom fizzled out.
Nadella said while the company was eliminating roles in some areas, it will continue to hire in key strategic areas.Ībout a week later, the tech giant reported disappointing quarterly profits and warned that revenue deceleration was expected to continue into 2023. He said the decision was difficult but necessary, adding that "we are living through times of significant change." The company added that it would continue to invest in strategic areas and allocate both "capital and talent to areas of secular growth."ĬEO Satya Nadella wrote in a blog post that organisations in every industry and geography are now “exercising caution as some parts of the world are in a recession and other parts are anticipating one". In January, Microsoft said it would lay off some 10,000 employees or about 5% of its global workforce to “align cost structure” with declining revenue. The company, which has about 3,000 employees, said it will also continue its hiring freeze and make a number of other internal changes to “protect the short-term health” of its business. Last week, GitHub, a software collaboration platform owned by Microsoft, announced it is laying off up to 10% of its workforce and closing all of its offices, including its headquarters in San Francisco. Meanwhile, Xbox Chief Phil Spencer, in an email to employees, said, "I encourage everyone to take the time and space necessary to process these changes and support your colleagues."
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