DAVOS, Switzerland – Microsoft Corp on Wednesday (Jan 18) said it would eliminate 10,000 jobs and take a US$1.2 billion (S$1.6 billion) charge to earnings, as its cloud-computing customers reassess their spending and the company braces for potential recession. The layoffs add to the tens of thousands announced in recent months across the technology sector, which has downshifted following a...
The logo of Microsoft is seen outside their offices in Herzliya, near Tel Aviv, on Dec 27, 2022.DAVOS, Switzerland – Microsoft Corp on Wednesday said it would eliminate 10,000 jobs and take a US$1.2 billion charge to earnings, as its cloud-computing customers reassess their spending and the company braces for potential recession.
In a note to employees, CEO Satya Nadella attempted to address the divergent outlook for different parts of the business. However, Microsoft would keep hiring in "strategic areas," he said. AI is likely to be one of those areas. Nadella this week touted AI to world leaders gathered in Davos, Switzerland, claiming the technology would transform its products and touch people around the globe.
"We haven't seen this activity since the dot-com bust," said Andrew Challenger, the company's senior vice president. The charge is attributable to severance costs as well as adjustments to Microsoft's hardware lineup and lease consolidation to build higher-density workspaces, Nadella said.
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