In 2022 Microsoft reportedly laid off about 1% of its workforce. Now it is being reported by Sky News that a second round of cuts will, this time lay off about 5% of Microsoft’s workforce.
Right now, Microsoft has about 220,000 employees, if the 5 number is correct, this round of layoffs could top 10,000 employees losing their jobs.
Microsoft is not the only company cutting staff, as tech giants are looking for ways to cut costs. Recently Twitter, Meta, Voinbase, and even nontech-related companies like Goldman Sachs have all been laying off staff recently.
Recently Microsoft’s CEO Satya Nadella warned of a challenging two years ahead. Nadella warned that Microsoft wasn’t “immune to the global changes” during an interview with CNBC. “The next two years are probably going to be the most challenging,”
2020 was a huge year for tech companies as everyone moved only during work from home. Now, as the world opens back up, the demand for services like Microsoft Teams is still higher but not as high as it once was. This, plus fears of an overall slowdown of the economy, has forced companies to find ways to lower costs.