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Why is Microsoft cutting off more jobs in the US? Read to know

Satya Nadella, the CEO of Microsoft told the employees via memo, (which was seen in The Verge report), that only hourly workers will receive the raise this year.

Edited By: India TV Tech Desk New Delhi Published on: May 12, 2023 20:17 IST
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Image Source : MICROSOFT Microsoft cutting off more jobs in the US

Microsoft has recently been cutting 158 jobs in the Redmond area of Washington State, a report stated. These job cuts are separate from the 10,000 layoffs that were announced by the tech giant in January, said Geek Wire. The state Employment Security Department (ESD) has received a filing from Microsoft about the reduction in jobs.

In an official statement, the spokesperson of the company said, "Organisational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritise and invest in strategic growth areas for our future and in support of our customers and partners.”

As per the report, more than 2,700 Seattle-area workers of the company were affected by the layoffs which were announced earlier this year (2023). As of its last headcount report on June 30, Microsoft's employee count stood at 221,000. This figure represents a growth of 22% or 40,000 individuals compared to the previous year.

Due to ongoing global macroeconomic challenges, Microsoft has announced that it will not be providing any pay raises to its salaried employees, including senior leaders, this year.

Satya Nadella, the CEO of Microsoft told the employees via memo, (which was seen in The Verge report), that only hourly workers will receive the raise this year.

Nadella further told the employees, "We are clear that we are helping drive a major platform shift in this new era of AI, and doing so in a dynamic, competitive environment while also facing global macroeconomic uncertainties," Nadella told employees.

He further added, "We must maintain a leadership position in our at-scale businesses of today, generating enough yield to invest and lead in the next wave, while staying on the frontiers of both performance and efficiency.”

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The report states that Microsoft has stated that it will still offer salaried employees bonuses and stock awards.

Inputs from IANS

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