Microsoft to Lay Off 10,000 Employees

As its cloud-computing clients review their spending as the firm prepares for a potential recession, Microsoft Corp (MSFT.O) announced on Wednesday that it would cut 10,000 positions and take a $1.2 billion impairment to earnings.

The cutbacks increase the tens of thousands of layoffs that have been announced recently in the technology sector, which has slowed down after experiencing rapid expansion during the pandemic.

The announcement comes as the software developer plans to increase investment in generative artificial intelligence, which the market views as the new growth area.

CEO Satya Nadella made an attempt to address the disparate outlook for various business segments in a note to employees.

Customers wanted to maximize their digital spending to get more done for less money while also being cautious given that some regions of the world are currently experiencing a recession and others are preparing for one, he said.

Less than 5% of Microsoft’s workers will be let go, according to Nadella, and notices will start to be sent out on Wednesday.

But he added that Microsoft would continue to hire in important positions. Most likely, one of those areas will be AI. This week, Nadella praised AI to world leaders gathered in Davos, Switzerland, saying the technology would change its offerings and have an impact on people all across the world.

Microsoft has considered increasing its $1 billion stock in OpenAI, the Silicon Valley business that created the crazed ChatGPT chatbot, which Microsoft intends to launch soon through its cloud service.

The price of the company’s shares in Redmond, Washington, decreased by 2% on Wednesday.

The statement coincides with the beginning of layoff notices at its retail and cloud computing rival Amazon.com Inc (AMZN.O), which began informing staff members of its own 18,000 job losses on Wednesday.

According to Amazon, affected employees in the US, Canada, and Costa Rica will be notified by day’s end. After the Chinese New Year, notification will be sent to employees in China.

RELATED ARTICLES

Military Service Member Found Dead In Pentagon Parking Lot

A military service man was discovered dead in a car parked outside the Pentagon on Tuesday afternoon, in a heartbreaking occurrence. Brig....

VP Harris Gets Booed During Appearance At NCAA Basketball Game

While watching an NCAA Tournament game on Thursday, Vice President Kamala Harris received a barrage of jeers. Her old institution Howard University...

James O’Keefe Returns After Sudden Departure

James O'Keefe, the founder and chairman of Project Veritas, was placed on paid leave by the board of directors, according to a...

McCarthy Not Backing Down on Jan. 6

For many years, the only proof that Americans saw coming from inside the US Capitol building on that crucial day early in...

First State to Ban Transgender Individuals From Using Public School Bathroom of Choice

Arkansas Gov Sarah Huckabee Sanders signed a law prohibiting transgender people at public schools from using the restroom that matches their gender...

CNN Crew Robbed While Reporting on Woke City’s Rampant Crime

While covering the city's escalating violence, a CNN crew was mugged in San Francisco. On Friday, CNN journalist Kyung...

YOU MAY ALSO LIKE…

LATEST POSTS ON THE DAILY ELEPHANT

Most Recent

First State to Ban Transgender Individuals From Using Public School Bathroom of Choice

Arkansas Gov Sarah Huckabee Sanders signed a law prohibiting transgender people at public schools from using the restroom that matches their gender...

James O’Keefe Returns After Sudden Departure

James O'Keefe, the founder and chairman of Project Veritas, was placed on paid leave by the board of directors, according to a...

CNN Crew Robbed While Reporting on Woke City’s Rampant Crime

While covering the city's escalating violence, a CNN crew was mugged in San Francisco. On Friday, CNN journalist Kyung...

Here’s When John Fetterman Could Be Released From the Hospital

During the 2022 Democratic primary for the Pennsylvania Senate seat, then-Lt. Governor John Fetterman had a stroke. Despite needing weeks to recover...

Putin Issued ARREST WARRANT By International Criminal Court

The International Criminal Court has issued an arrest warrant for Russian President Vladimir Putin in connection with the Ukrainian conflict.

VP Harris Gets Booed During Appearance At NCAA Basketball Game

While watching an NCAA Tournament game on Thursday, Vice President Kamala Harris received a barrage of jeers. Her old institution Howard University...