Today marks exactly one year since Microsoft rocked the video game world with its $68.7 billion acquisition of Activision Blizzard. On the anniversary of the pending merger (pending antimonopoly approval), the American company has prepared another “surprise”. But this time from a different barrel.
Redmond giant announced big layoffs. About 10,000 people will leave Microsoft by March 31, 2023, which is 4.5% of more than 220,000 employees. Layoffs will begin today, and it is not yet specified which units will be affected. It’s not yet clear if the layoffs will impact the Xbox division or Microsoft’s gaming plans.
Satya Nadella, CEO of Microsoft, called the present time of great change and reduction as difficult but necessary.
The job cuts come as the firm makes adjustments to its business in response to the pandemic, looming recession fears and advances in artificial intelligence technology. Nadella is convinced that Microsoft will become stronger and more competitive.
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“It is important to note that while we are liquidating positions in some areas, we will continue recruiting in key strategic areas“ adds Nadella. The company also expects to spend $1.2 billion to cover severance pay for departing employees, as well as changes to its equipment portfolio and lease consolidation costs.
Already between 2014 and 2015, Microsoft cut approximately 25,000 jobs. Since 2019, Microsoft has hired more than 75,000 employees to meet the demand for growing interest in online services and the cloud due to the onset of the pandemic, according to The New York Times.
In the most recent quarter, Microsoft’s revenue was $50.1 billion, up 11%, and profit was $17.6 billion (down 14%). Microsoft is reportedly looking to invest $10 billion in OpenAI and continues to pursue its $68.7 billion acquisition of Activision Blizzard.
Source :Indian TV
