The economic meltdown has reached Big Tech and Satya Nadella-run Microsoft has become the first tech giant to lay off employees as part of a ‘realignment’. The layoffs at Microsoft reportedly affect nearly 1 per cent of its 1,80,000-strong workforce across its offices and product divisions.
“Today we had a small number of role eliminations. Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly,” Microsoft told Bloomberg in a statement late on Tuesday.
“We will continue to invest in our business and grow headcount overall in the year ahead,” the company added. Microsoft has also slowed hiring in the Windows, Teams and Office groups. Microsoft reported strong earnings in its third quarter, with a 26 per cent jump (on-year) in cloud revenue and overall revenue of $49.4 billion.
However, last month, the company revised its Q4 revenue and earnings guidance downward. Twitter has also cut 30 per cent of its recruiting team while Elon Musk-run Tesla has been laying off hundreds of employees.
Other tech companies that have slowed hiring include Nvidia, Snap, Uber, Spotify, Intel and Salesforce, among others. Cloud major Oracle recently considered laying off thousands of workers to save up to $1 billion in cost-cutting measures, the media reported.