Microsoft is getting ready to say that it will cut jobs tomorrow. Sky News says that thousands of jobs will be cut, and that the software giant is considering laying off about 5 percent of its employees. Since Microsoft has more than 220,000 workers, this could mean more than 10,000 layoffs.
Sky News doesn’t say when the expected layoffs will happen, but a source familiar with Microsoft’s plans tells The Verge that layoffs are likely to be announced on Wednesday before the company reports its quarterly earnings the following week.
Bloomberg also says that Microsoft’s engineering divisions will lay off a number of people tomorrow. People say that the job cuts are “significantly bigger” than Microsoft’s 1 percent cut last year. Consulting and customer and partner solutions jobs were cut during the last round of layoffs.
Microsoft is the latest big tech company to have to deal with a tough economy. The job cuts will happen just a few days after Microsoft started a new policy that lets employees take as much time off as they want. Microsoft employees with unused vacation time will get a one-time payment in April, and managers will be able to approve unlimited “Discretionary Time Off.”
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The cuts also happen just a few weeks after Microsoft CEO Satya Nadella said that the tech industry would face problems for the next two years. In an interview with CNBC, Nadella admitted Microsoft wasn’t “immune to the global changes” and spoke of the need for tech companies to be efficient.
“The next two years are probably going to be the most challenging,” said Nadella. “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.”
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