Microsoft has announced that it will be cutting 10,000 jobs in 2023. While not everyone impacted by the cuts will be laid off at once, it will equate to about five percent of the staff being let go by the end of the year.
The news, initially reported by Sky News Tuesday night, was met with a refusal to comment from Microsoft. The company told the outlet that it doesn’t comment on “rumor or speculation”.
Just hours later, in a statement on the cuts posted on the company’s blog and sent internally to employees, Microsoft CEO Satya Nadella confirmed the layoffs and said that the decision comes down to consumer spending habits and the need to address spending within the organization.
“First, as we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less,” he said. “We’re also seeing organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one.”
Despite the layoffs, Nadella says, the company will still be hiring people for “strategic areas”.
“We will continue to invest in strategic areas for our future, meaning we are allocating both our capital and talent to areas of secular growth and long-term competitiveness for the company, while divesting in other areas,” he said.
It’s unclear what specific departments will be impacted by Microsoft cutting jobs. However, it’s certain that the moves will be felt across every area of the company.
Nadella closed his statement by thanking “everyone” who has worked for Microsoft, as well as those still with the company.
“Thank you for the focus, dedication, and resilience you demonstrate for Microsoft and our customers and partners each day,” he said.
For more Insider Gaming, check out our story on Ubisoft employees being set to strike in wake of CEO Yves Guillemot’s recent comments.