Microsoft Lays Off Around 1,000 Employees

Even Microsoft can’t avoid tech layoffs. On Monday, October 18, the company reportedly moved to cut less than 1,000 employees spread out across multiple divisions of its business and various regions according to an Axios report. That was just the beginning though. Three months later, the company fully removed the bandaid and cut around 10,000 employees.

For now, specific details explaining the reason for the cuts remain sparse. The layoffs come three months after Microsoft reportedly moved to cut other jobs impacting around 1% of their company as part of a broader “strategic realignment.” Microsoft did not immediately respond to Gizmodo’s request for comment but told Axios it plans to continue investing in its business. Microsoft did not deny the layoffs occurred.

“Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly.” a spokesperson said following the first round of layoffs. “We will continue to invest in our business and hire in key growth areas in the year ahead.”

CEO Satya Nadella announced the second, much larger round of layoffs in January as part of a larger pivot to refocus the company towards AI and other more immediate business priorities. Outside of those priorities, over hiring and a potential looming recession also played a factor.

“I’m confident that Microsoft will emerge from this stronger and more competitive, but it requires us to take actions grounded in three priorities,” Nadella wrote in a note to staff. 

Still, Microsoft’s cuts come as somewhat of a shock. While other tech giants like Meta and Google have telegraphed potential cuts for months and even encouraged their own under performing employees to walk out the door, Microsoft remained relatively quiet on the issue. On paper, Microsoft wasn’t as susceptible to the effects of a worsening digital advertising market, and it appeared, at least, that it hadn’t over-extended itself with unusual investments and mad hiring during the pandemic like some other firms.