Microsoft announces mass layoffs following multibillion-dollar investment

Jan 18 2023, 8:11 pm

Microsoft is the latest tech giant to announce mass layoffs impacting around 10,000 employees.

We emailed Microsoft to see how many Canadian employees might be affected by the news. Still, it couldn’t offer any specific details outside of a communication sent to Microsoft employees by Satya Nadella, CEO of Microsoft.

The mass layoffs come after Microsoft announced a $10 billion investment in ChatGPT, a chatbot that OpenAI launched.

The statement from Nadella does confirm that employees outside of the US are impacted.

“Benefits for employees outside the US will align with the employment laws in each country.”

Nadella told employees, “we’re living through times of significant change.”

“Today, we are making changes that will result in the reduction of our overall workforce by 10,000 jobs through the end of FY23 Q3.”

Nadella added that it amounts to less than 5% of the total employee base. Some notifications have been sent to employees today.

“While we are eliminating roles in some areas, we will continue to hire in key strategic areas.”

Nadella acknowledged that this is a challenging time for everyone impacted and that the senior leadership team will go through the process in “the most thoughtful and transparent way possible.”

He also said, “these decisions are difficult, but necessary.”

“I want to extend my deepest thanks and gratitude to everyone who has contributed to Microsoft up to this point and to all of you who will continue to contribute as we chart our path ahead. Thank you for the focus, dedication, and resilience you demonstrate for Microsoft and our customers and partners each day.”

The news came after Amazon announced that it would lay off nearly 20,000 employees.

Microsoft has Canadian offices in Toronto, Ottawa, Winnipeg, Edmonton and Calgary. It also has two offices in Montreal and four offices in Vancouver.

Amir AliAmir Ali

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