(Tiper Stock Exchange) – Microsoft announced one workforce reduction of approximately 10,000 employees by the end of the third fiscal quarter of 2023, hardware portfolio changes and a lease consolidation to create higher density in workspaces. The US giant is taking these actions “in response to macroeconomic conditions and al changing customer priorities“.
Collectively, these actions will result in a $1.2 billion charge in the second quarter of our fiscal 2023, with a negative $0.12 impact on diluted earnings per share.
The layoffs represent less than 5% of the total employee base. “It is important to note that while we are shedding roles in some areas, we will continue to hire in key strategic areas,” CEO Satya Nadella said in an email communicating the decision to employees.
While Microsoft has seen customers ramp up their digital spending during the pandemic, it sees them now optimize their digital spend” to do more with less“, said the CEO.
“We are also observing that the organizations in every industry and geographic area exercise caution as some parts of the world are in a recession and other parts are expecting one – reads the email – At the same time, the next big wave of computing is being born with the advances in artificial intelligence, as we are transforming the most advanced models of the world into a new IT platform.
“I am confident that Microsoft it will come out stronger and more competitive“Nadella said.