“Organizational and personnel adjustments are a necessary and regular part of running our business. We will continue to prioritize and invest in strategic growth areas for our future and in support of our customers and partners,” a Microsoft spokesperson said.
This news comes a few days before the end of Microsoft’s 2023 fiscal year, so it is not surprising that the company announced the layoffs as part of a restructuring of its business in a new fiscal year.
The layoff crisis does not stop
Technology companies are some of the most affected by the staff cuts, since during the pandemic years they decided to add staff to meet the growing demand that was experienced at that time and now they are looking for new ways to save money.
In January, when Microsoft CEO Satya Nadella announced the layoff of almost 5% of his workforce, he said the decision was due to a restructuring of costs, in order to align them with a slower pace of revenue, In addition to making contracts in key areas.
“We will continue to invest in strategic areas for our future, which means we are allocating our capital and talent to areas of secular growth and long-term competitiveness for the company, while divesting from other areas,” Nadella said.
The signs of recession in various economies around the world, as well as the new wave of Artificial Intelligence are also part of the reasons for the new changes and are forcing Microsoft to adapt in an “industry that does not forgive” those who are left behind.
Yesterday Evernote, the company behind the popular note-taking app, announced the layoff of most of its employees based in the United States and Chile, with the aim of moving its operations to Europe.