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Microsoft To Sack 10,000 Staff

Microsoft, an American multinational technology company, has announced plans to lay off about 10,000 of its workforce, as it responds to “macroeconomic conditions and changing customer priorities.”

The cut represents 5 percent of the company’s total workforce.

In a statement on the firm’s website on Wednesday, Satya Nadella, chief executive officer (CEO), Microsoft, said the company seeks to strive to deliver results on an ongoing basis, while investing in long-term opportunities.

He said this would require the company to take “actions grounded in three priorities”.

The CEO added that in the process of taking these actions, 10,000 workforces would be affected all through till the end of the year.

“We will align our cost structure with our revenue and where we see customer demand. Today, we are making changes that will result in the reduction of our overall workforce by 10,000 jobs through the end of the year (FY23) third quarter (Q3),” Nadella said.

“This represents less than 5 percent of our total employee base, with some notifications happening today. It’s important to note that while we are eliminating roles in some areas, we will continue to hire in key strategic areas”, the statement read in parts.

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US Tech Giant, IBM To Sack 3900 Workers

IBM, a US multinational technology company, has become the latest tech giant to slash thousands of jobs.

The data giants announced on Wednesday that 3,900 job positions would become void, or 1.5% of its global workforce.

The company explained that this layoff was not due to poor employee performance in 2022 or a fear for the new year, saying they were related to the previously announced sale of two business units.

According to a spokesperson, these job cuts will cost IBM about $300 million this quarter.

While the layoff trend has persisted, IBM has explained that they are not downsizing in response to the gloomy global economic outlook.

IBM CEO, Arvind Krishna, expressed utmost confidence in the upcoming year in a call with the CNN on Wednesday.

The units affected by this development are; Kyndryl, an IT infrastructure services business that was officially separated from IBM in November, and IBM’s healthcare analytics business, which an investment firm is in the process of acquiring.

(Culled from Technext)

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Citing Surge In ‘Operating Expenses’, Spotify Announces Plans To Layoff Over 6% Of Staff

Online mega music streaming platform, Spotify has announced its plans to cut 600 jobs due to possible recession.

Disclosing this in a statement on Monday, Daniel Ek, chief executive officer (CEO), Spotify, said the cut represents 6 percent of its general workforce

He said Dawn Ostroff, the company’s chief content and advertising business officer, will depart as part of a broader reorganisation.

According to Ek, the decision to reduce the number of employees was “difficult, but necessary.

Further giving reasons for the job cut, the CEO said Spotify’s operating expenses (OPEX) outpaced its revenue growth by two-fold.

“That would have been unsustainable long-term in any climate, but with a challenging macro environment, it would be even more difficult to close the gap,” he said.

“I hoped to sustain the strong tailwinds from the pandemic and believed that our broad global business and lower risk to the impact of a slowdown in ads would insulate us.

“In hindsight, I was too ambitious in investing ahead of our revenue growth. And for this reason, today, we are reducing our employee base by about 6 percent across the company. I take full accountability for the moves that got us here today.

“My focus now is on ensuring that every employee is treated fairly as they depart.”

The company’s move to retrench workers comes at a time when tech companies are facing a demand downturn.

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Google To Lay Off 6% Of Staff

Alphabet Inc (GOOGL.O), Google’s parent firm, has announced the elimination of approximately 12,000 jobs, or 6% of its staff, in the latest round of layoffs to rock the technology industry.

Sundar Pichai, CEO of Alphabet stated in a staff note seen by Reuters that the company had rapidly increased employees in previous years “for a different economic reality than the one we confront now.”

“I take full responsibility for the decisions that led us here,” he said.

The layoffs come just days after rival Microsoft Corp (MSFT.O) announced 10,000 layoffs.

The job reductions at Alphabet touch teams across the organization, including recruiting, some corporate operations, and some engineering and product teams.

The cutbacks are global in scope and have a direct impact on US employees.

According to the message, Alphabet has already emailed concerned employees, but the procedure would take longer in other countries due to local employment rules and norms.

The announcement comes at a time of economic instability as well as technological promise, with Google and Microsoft investing in generative artificial intelligence, a booming area of software.

“I am confident about the huge opportunity in front of us thanks to the strength of our mission, the value of our products and services, and our early investments in AI,” Pichai said in the note.

(Reuters)

 

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