Microsoft Will Lay Off Over 10,000 Employees
Microsoft intends to make major staff cuts. It plans to lay off up to 11,000 employees, or about 5% of its total workforce. These would be the second such layoff made in recent months.
The economic crisis caused by the COVID-19 pandemic and the war in Ukraine has made it increasingly difficult for companies to stay in business. Many of them are having to cut business costs. The biggest staff cuts are being made by large technology corporations, which are getting rid of thousands of employees. A few months ago Amazon announced layoffs of 10,000 people, while Meta lost 11 thousand employees. Now Microsoft has decided on a similar move.
As reported by Bloomberg, the US giant intends to announce the layoff of 11 thousand employees today, or about 5% of the workforce (the company employs about 220 thousand people). It should be mentioned here that this is not the first staff cut in recent times. Last year, the Redmond giant announced laying off less than 1% of employees. It is not yet known which departments will be affected, but it is unofficially said that it may be mainly engineering departments, which deal with the Xbox console, among other things.
Microsoft is laying off 5 percent of its staff
The layoffs come just after Microsoft announced the replacement of vacations with "unlimited" time off. In theory, this means that there are no longer limits (maximum and minimum) on the number of vacation days an employee can take per year, which would theoretically work in their favor. Industry representatives believe, howeverthat this could have the opposite effect, as this solution enables the corporation to avoid paying compensation for unused paid vacation. Given the information about further layoffs, it can be assumed that this is the giant's new idea to cut costs. Blogger Dare Obasanjo agrees with this, claiming this is just a pay cut for those employed by the corporation. According to him, a mid-level employee earning $200,000 a year who misses a week of paid vacation will lose $4,000 after leaving the company.
