Microsoft to Cut 10,000 Jobs As Spending Slows

Microsoft will cut 10,000 jobs in the latest round of staff redundancies to hit the tech industry.

It will affect up to 5% of its global workforce and cost the business $1.2bn in severance and reorganisation costs.

Microsoft chief executive Satya Nadella said that while customer spending had grown during Covid-19, more people were now choosing to “exercise caution”.

He said the firm would continue to hire in key areas.

Breaking the news in a memo to staff, Mr. Nadella said many parts of the world were in a recession or anticipating one, while “at the same time, the next major wave of computing is being born, with advances in AI”.

Microsoft is considering a multi-billion-dollar investment in artificial intelligence company OpenAI, the maker of ChatGPT (Generative Pre-trained Transformer), according to the Financial Times.

BBC/Dominica Nwabufo