Microsoft plans to slash 10,000 jobs from its global workforce amid growing concerns that the economy will experience a recession. The layoffs is expected to begin this week.
Microsoft Layoffs Reflect An Industry Wide Trend
This comes as no surprise as the tech industry is experiencing a downturn, following rapid mass hiring during the pandemic. The company, which has already experienced two layoffs in 2022, plans to further slash jobs in a effort to save costs.
Other major tech companies such as Amazon, Facebook have also laid off 5-10% of their workforce in 2022.
“These are the kinds of hard choices we have made throughout our 47-year history to remain a consequential company in this industry that is unforgiving to anyone who doesn’t adapt to platform shifts,” said Microsoft CEO Satya Nadella.
The tech giant is pouring billions into AI development, such as AI tools like Dall-E and ChatGPT.