By MATT O'BRIEN
AP Technology Writer
Microsoft is cutting 10,000 workers, almost 5% of its workforce, joining other tech companies that have scaled back their pandemic-era expansions.
The company said in a regulatory filing Wednesday that the layoffs were a response to "macroeconomic conditions and changing customer priorities."
The Redmond, Washington-based software giant said it will also be making changes to its hardware portfolio and consolidating its leased office locations.
Microsoft is cutting far fewer jobs than it had added during the COVID-19 pandemic as it responded to a boom in demand for its workplace software and cloud computing services with so many people working and studying from home.y.
Microsoft's workforce expanded by about 36% in the two fiscal years following the emergence of the pandemic, growing from 163,000 workers at the end of June 2020, to 221,000 in June 2022.
Other tech companies have also been trimming jobs amid concerns about an economic slowdown.
Amazon and business software maker Salesforce earlier this month announced major job cuts as they prune payrolls that rapidly expanded during the pandemic lockdown.
Amazon said that it will be cutting about 18,000 positions. It's the largest set of layoffs in the Seattle company's history, although just a fraction of its 1.5 million global workforce.
Facebook parent Meta is laying off 11,000 people, about 13% of its workforce. And Elon Musk, the new Twitter CEO, has slashed the company's workforce.
"Quite frankly, we in the tech industry will also have to get efficient, right?" Microsoft CEO Satya Nadella said. "It's not about everyone else doing more with less. We will have to do more with less. So we will have to show our own productivity gains with our own sort of technology."
Microsoft declined to answer questions about where the layoffs and office closures would be concentrated. The company sent notice to Washington state employment officials Wednesday that it was cutting 878 workers at its offices in Redmond and the nearby cities of Bellevue and Issaquah.
As of June, it had 122,000 workers in the U.S. and 99,000 elsewhere.