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The software company’s Azure cloud computing business drove revenue growth over the three months through September, as sales in its personal computing division decreased slightly.Įven as Microsoft makes significant cuts, Nadella said the company will continue to invest in “strategic areas for our future” and pointed to advances in AI as “the next major wave” of computing. Microsoft will announce second quarter earnings on January 24. A recent report from outplacement firm Challenger, Gray & Christmas found tech layoffs were up 649% in 2022 compared to the previous year, versus just a 13% uptick in job cuts in the overall economy during the same period. While the overall labor market remains tight, layoffs in the tech sector have mounted at a staggering pace. Tech CEOs, from Meta’s Mark Zuckerberg to Salesforce’s Marc Benioff, have blamed themselves for over-hiring early on in the pandemic and misreading how a surge in demand for their products would cool once Covid-19 restrictions eased.

In October, Axios reported that Microsoft had laid off under 1,000 employees across several divisions. (FB) parent Meta also recently announced 11,000 job cuts, the largest in the company’s history. (AMZN) announced that it plans to lay off 18,000 people and Salesforce said it is cutting 10% of its staff.

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The demand for digital services during the pandemic has also waned as people return to their offline lives. Multiple tech companies have made deep cuts to their workforces since the start of the year, as inflation weighs on consumer spending and rising interest rates squeeze funding. “These decisions are difficult, but necessary,” Nadella wrote. He said the company will incur a $1.2 billion charge in its second quarter related to “severance costs, changes to our hardware portfolio, and the cost of lease consolidation.” Nadella said the job the cuts represent less than 5% of the company’s total workforce and the reductions will be complete by the end of its fiscal third quarter this year, which ends in March. Microsoft had approximately 221,000 full-time employees globally as of June 30, 2022, according to a US Securities and Exchange Commission filing, with some 122,000 of those staffers based in the United States. “First, as we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less.” “We’re living through times of significant change, and as I meet with customers and partners, a few things are clear,” he wrote. In a memo to staffers Wednesday, Nadella also cited changing demand years for digital services years into the pandemic as well as looming recession fears. Silicon Valley layoffs go from bad to worse Silicon Valley has the lowest office vacancy rate in the U.S., even as technology companies embrace remote work. Microsoft's investment will also help the two companies engage in supercomputing at scale and create new AI-powered experiences, the release said.The Amazon Lab126, a research and development company owned by, headquarters in Sunnyvale, California, U.S., on Wednesday, April 21, 2021. Microsoft said Monday that Azure will continue to serve as OpenAI's exclusive provider. In July 2019, Microsoft backed OpenAI with $1 billion, and the investment made Microsoft the 'exclusive' provider of cloud computing services to OpenAI. OpenAI works closely with Microsoft's cloud service Azure. 'We formed our partnership with OpenAI around a shared ambition to responsibly advance cutting-edge AI research and democratize AI as a new technology platform,' Microsoft CEO Satya Nadella said in a blog post. Microsoft said the renewed partnership will accelerate breakthroughs in AI and help both companies commercialize advanced technologies in the future. The deal marks the third phase of the partnership between the two companies, following Microsoft's previous investments in 20. Microsoft declined to provide a specific dollar amount, but Semafor reported earlier this month that Microsoft was in talks to invest as much as $10 billion. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit

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