Layoffs: Tech industry lays off nearly 30,000 jobs

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Layoffs: the technology sector lays off nearly 30,000 jobs

The giant Microsoft announces the layoff of 10,000 jobs in due to economic conditions. On the same day, Amazon cut 18,000 jobs worldwide.

The American computer group Microsoft announced on Wednesday a series of cost-cutting measures, including the abolition of around 10,000 employees by the end of March, or just under 5% of its workforce.

Times are tough for tech giants. On Wednesday, two GAFAM players, Amazon and Microsoft, announced the loss of nearly 30,000 jobs in their ranks. Microsoft will cut 10,000 positions by the end of March as part of a series of cost-saving measures, while Amazon plans to lay off 18,000 employees.

In a press release, Microsoft explains that it made this decision in response to macroeconomic conditions and changing customer priorities. The Redmond, Washington-based company will cut just under 5% of its workforce.

It plans to modify its IT equipment portfolio and reduce the number of workspaces.

These savings measures will represent a charge of US$1.2 billion in the lagged second quarter accounts that the group is due to disclose on January 24. Its turnover is expected to increase by only 2.7% over one year, a very slow pace for the IT giant accustomed to double-digit growth.

In a public letter to employees, Microsoft boss Satya Nadella explains that while customers accelerated their IT spending during the pandemic, they are now looking to optimize it to do more with less.

For its part, Amazon announces a wave of layoffs in the United States, Canada and Costa Rica by the end of the day on Wednesday, as part of a plan targeting 18,000 employees, the e-commerce giant told Reuters.

Amazon.com chief executive Andy Jassy said earlier this month that the job cuts, which affect about 6% of the company's roughly 300,000 employees, will primarily affect e-commerce sectors. and human resources.

Companies around the world are also cautious about recession risks as advances in artificial intelligence shake up the sector, summarized Microsoft boss Satya Nadella.

At the beginning of January, e-commerce giant Amazon had already announced that it would cut just over 18,000 jobs worldwide. The review of our annual planning [….] has been more difficult this year given the economic uncertainty and the fact that we have hired massively in recent years, explained at the time the director General Andy Jassy.

At the end of September 2021, the group had 1.54 million employees worldwide.

Last November, Meta, the parent company of Facebook and Instagram, announced the loss of more than 11,000 jobs, which represented 13% of its staff. The California giant, which had more than 87,000 employees worldwide at the end of September 2021, is battling soaring costs and a weak advertising market.

Twitter has abolished approximately 50% of the 7,500 jobs in the San Francisco company last November in the wake of the takeover by entrepreneur Elon Musk.

In Canada, Shopify, a specialized company in e-commerce, cut 10% of its workforce last July. The Ottawa-based company had 10,000 employees and contractors at the end of 2021.

Aggregator Layoffs.fyi counted 154,336 employees from more than 1,000 tech companies including the positions were abolished in 2022. And 2023 does not bode better: the aggregator already lists more than 25,000 positions abolished within a hundred companies.

With information from Agence France-Presse , and Reuters

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