Microsoft is cutting more jobs this week, with CEO Satya Nadella confirming 10,000 layoffs in what the executive described as a “time of significant change.” In addition to the broader Microsoft teams, people at Xbox and Bethesda are reportedly affected by the job losses.

In a ___ Memo to staffNadella said the 10,000 layoffs — less than 5% of the company’s total workforce of more than 220,000 — will take place starting today, Jan. 18, through the end of the third quarter of fiscal 2023. The New York TimesMicrosoft has hired more than 75,000 people since 2019 to meet the demand for online services and increased interest in cloud computing due to the onset of the pandemic.

It’s the latest round of layoffs at Microsoft, as Nadella ended up around him. 25,000 jobs between 2014 and 2015 As a result of the company’s abandonment of the Nokia business.

“It’s important to note that while we are eliminating roles in some areas, we will continue to hire in key strategic areas. We know this is a difficult time for everyone affected. Senior leadership “The team and I are committed that as we go through this process, we will do it in the most thoughtful and transparent way possible,” Nadella said.

The CEO did not say which departments within Microsoft are affected, but Bloomberg reported. Microsoft’s Xbox and Bethesda divisions are affected in some capacity.

Explaining the job cuts, Nadella said they stemmed from Microsoft making adjustments to its business in response to the pandemic, fears of a recession and advances in AI technology.

“Earlier, as we saw consumers accelerate their digital spending during the pandemic, we are now seeing them optimize their digital spending to maximize it. We, like some parts of the world, are Industry and geographies are also seeing organizations taking precautions. are in recession and other segments are expecting one,” he said. “At the same time, the next big wave of computing is emerging with advances in AI, as we transform the world’s most advanced models into a new computing platform.”

Nadella said he believes Microsoft will “emerge from this stronger and more competitive.”

Nadella said Microsoft will make “strategic” investments as it looks to future growth, with AI as one of the pillars, while the company will also “disengage” in other areas.

“These are the kind of tough choices we’ve made in our 47-year history to remain a productive company in an industry that doesn’t forgive anyone who doesn’t adapt to platform changes,” Nadella said. Nadella said.

Microsoft will take a $1.2 billion charge due to severance costs for outgoing employees, as well as “changes to our hardware portfolio, and lease consolidation costs as we create greater density in our workplaces.”

Nadella called the job cuts “difficult but necessary”. Affected employees will receive Microsoft’s “full support,” including “above-market” severance pay, six months of health care, six months of continued vesting of stock awards, career transitions, he said. services, and includes 60 days’ notice before termination. Not yet notified. This applies to Microsoft employees in the US. Affected workers outside the US will receive benefits in accordance with local employment laws.

For Microsoft’s most recent quarter, the company brought in $50.1 billion in revenue, up 11%, and made a profit of $17.6 billion (down 14%).

Looking ahead, there is Microsoft Reportedly about to invest $10 billion in OpenAI. And Activision continues to seek to acquire Blizzard for $68.7 billion.

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