Popular American tech company, Microsoft, which has more than 220,000 employees has finalized plans to announce staff layoffs from Wednesday, January 18, 2023.
According to Sky News, thousands of roles will be cut, and the software giant is looking at cutting five per cent of its workforce.
Although no specific date was mentioned, an insider source stated that the layoffs would come today ahead of the company’s quarterly earnings next week.
Microsoft joins the latest big tech company facing the challenging economy, and this layoff is coming days after Microsoft implemented a new unlimited time off policy.
Employees of Microsoft who have an unused vacation balance will get a one-time payout in April, and managers will be able to approve unlimited “Discretionary Time Off.”
This is coming days after Microsoft’s CEO, Satya Nadella warned of two years of challenges ahead for the tech industry in an interview with CNBC.
“The next two years are probably going to be the most challenging. We did have a lot of acceleration during the pandemic, and there’s some amount of normalization of that demand. And on top of it, there is a real recession in some parts of the world,” Nadella said.