REDMOND (US): Microsoft Corp said on Wednesday it would cut 10,000 jobs by the end of the third quarter of fiscal 2023, the latest sign that layoffs were accelerating in the US technology sector as companies brace for an economic downturn.

The layoffs and costs related to hardware-portfolio and other changes will result in a charge of $1.2 billion in the second quarter of fiscal 2023, representing a negative impact of 12 cents on per share profit, Microsoft said.

In a note to staff, Microsoft Chief Executive Satya Nadella said customers wanted to “optimise their digital spend to do more with less” and “exercise caution as some parts of the world are in a recession and other parts are anticipating one.”

The news of layoffs, reported by media publications on Tuesday, follows some reductions last year.

Microsoft said in July last year that a small number of roles had been eliminated, while news site Axios rin October eported that the company had laid off almost 1,000 employees across several divisions.

Published in Dawn, January 19th, 2023