Microsoft slashes more jobs in US, not part of earlier global layoffs

SAN FRANCISCO: Microsoft is slashing 158 jobs in Washington State and the new layoffs are not part of the 10,000 announced by the tech company in January, the media reported.

According to a new filing with the state Employment Security Department (ESD) in the US, Microsoft is reducing 158 jobs in the Redmond area, reports Geek Wire.

“Organisational and workforce adjustments are a necessary and regular part of managing our business. We will continue to prioritise and invest in strategic growth areas for our future and in support of our customers and partners,” a company spokesperson said in a statement.

According to the report, more than 2,700 Seattle-area workers were affected by the layoffs announced earlier this year.

Microsoft had 221,000 employees as of June 30 (when it last reported headcount), an increase of 40,000 people or 22 per cent from the same time-frame the prior year.

Meanwhile, Microsoft will not give any raise to salaried employees, including senior leaders, this year as global macroeconomic conditions continue to haunt Big Tech.

Microsoft CEO Satya Nadella told employees in a memo, seen by The Verge, that only hourly workers will receive raises this year.

“We are clear that we are helping drive a major platform shift in this new era of AI, and doing so in a dynamic, competitive environment while also facing global macroeconomic uncertainties,” Nadella told employees.

“We must maintain a leadership position in our at-scale businesses of today, generating enough yield to invest and lead in the next wave, while staying on the frontiers of both performance and efficiency,” he added.

Microsoft will still offer salaried employees bonuses and stock awards, according to the report.