Satya Nadella led Microsoft announces layoffs; sacks 1% of staff

Economic slowdown has affected big tech companies in a major way. Satya Nadella led Microsoft is the latest one to announce layoffs.

Microsoft announces job cuts for the current fiscal year! (MINT_PRINT)

The global economic meltdown has affected BIG TECH too! And it has badly impacted CEO Satya Nadella led Microsoft Corp. The tech giant has announced layoffs on Monday after its realignment of business groups and roles. Microsoft layoffs have come as surprise. However, the company has closed its fiscal year on June 30 and is planning to keep hiring for some roles and finish the current fiscal year with increased headcount.

The Microsoft job cuts reportedly affected around 1 percent of its 1,80,000-person workforce across its offices and product divisions including consulting and customer and partner solutions and were dispersed across geographies.

Microsoft in an email to bloomberg, wrote, “Today we had a small number of role eliminations. Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly." They added, ““We will continue to invest in our business and grow our headcount overall in the year ahead."

The company has also slowed hiring in the Windows, Teams and Office groups.

Not only Microsoft but a number of big tech companies have announced their intent to layoff employees to deal with economic slowdown and fallout from other macroeconomic factors. Recently, Meta Platforms Inc. chief Mark Zuckerberg warned employees to brace themselves for "serious times" ahead if they don't meet the targets. He asked managers to identify and report low performers. The company has also cut down the number of hirings. Twitter Inc. too announced job cuts last week saying it would lay off 30% of its talent acquisition team. Tesla Inc. laid off about 200 people last month whereas popular video streaming giant Netflix cut about 3% of its workforce as it witnessed a massive drop in the number of its subscribers in the first quarter of the year.