New Delhi: The economic slowdown has reached Big Tech and Satya Nadella-run Microsoft has become the first tech giant to lay off employees as part of a ‘restructuring’. Microsoft’s layoffs reportedly affect about 1 percent of its 1,80,000-strong workforce in its offices and product divisions. “Today we had very few roles.
Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly,” Microsoft told Bloomberg in a statement late Tuesday. Overall headcount will continue to increase over the year,” the company added. (Also read: Elon Musk says Tesla will cut salaried workforce by 10% in 3 months)
Microsoft has also slowed hiring across Windows, Teams and Office Groups. Microsoft reported strong earnings in its third quarter, with a 26 percent jump (on-year) in cloud revenue and total revenue of $49.4 billion. (Also read: After the flight, BYJU’s-owned edtech startup WhiteHat Jr. lays off 300 employees)
However, last month, the company revised its Q4 revenue and earnings guidance downwards. Twitter has also cut its hiring team by 30 percent, while Elon Musk-run Tesla is laying off hundreds of employees. Other tech companies that have slowed hiring include Nvidia, Snap, Uber, Spotify, Intel and Salesforce. Cloud major Oracle is considering laying off thousands of employees to save up to $1 billion in recent cost-cutting measures, media reported.