News: Microsoft rules out layoffs in India amid global job cuts

Talent Management

Microsoft rules out layoffs in India amid global job cuts

Microsoft laid off 10,000 employees in early 2023 and another 1,900 in its gaming unit in January 2024 following its $75.4 billion acquisition of Activision Blizzard.
Microsoft rules out layoffs in India amid global job cuts

Microsoft, the tech giant renowned for its innovative strides in software and AI, has clarified its position on job cuts in India. Despite global reports of workforce reductions, senior officials at Microsoft have confirmed that the company has no plans to downsize its Indian operations. This assurance comes amidst news that Microsoft is cutting a small percentage of jobs—less than 1%—across departments worldwide.

Puneet Chandok, President of Microsoft India and South Asia, addressing concerns about potential layoffs in India, stated unequivocally, “No, not in India.” Speaking to Hindu Business Line, Chandok highlighted the company’s growing footprint in India, saying, “We are engaged in so many projects. In fact, for all of India, more jobs are being created.”

With a workforce of approximately 20,000 in India out of a global total of 228,000 employees, Microsoft’s commitment to maintaining and expanding its operations in India signals a strategic focus on the region. The company’s latest round of job cuts, attributed to performance-based reviews, remains minor compared to earlier downsizing efforts. For instance, Microsoft laid off 10,000 employees in early 2023 and another 1,900 in its gaming unit in January 2024 following its $75.4 billion acquisition of Activision Blizzard.

Microsoft’s reaffirmation of its dedication to India coincides with a two-day visit by its Chairman and CEO, Satya Nadella. During his visit, Nadella announced a substantial $3 billion investment in India’s cloud and AI infrastructure over the next two years. “India is rapidly becoming a leader in AI innovation, unlocking new opportunities across the country,” Nadella remarked.

The investments aim to strengthen India’s AI ecosystem, enhancing productivity, efficiency, and accessibility. Under the IndiaAI Mission, Microsoft has collaborated with the Ministry of Electronics and Information Technology (MeitY) and partnered with key organizations, including RailTel, Apollo Hospitals, Bajaj Finserv, Mahindra Group, and upGrad. These partnerships seek to accelerate AI-driven transformations across various sectors in India.

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“We will continue to use AI to unlock possibilities for the next few decades and ensure that communities across the country have access to the compute they need to prosper in the AI era,” Chandok added.

Globally, Microsoft’s workforce reductions have drawn attention but remain modest compared to other tech giants. In recent years, Meta, Amazon, Alphabet, Accenture, and Dell have announced significant layoffs, ranging from 10,000 to 27,000 jobs. Microsoft’s approach to workforce adjustments has been more measured, reflecting its focus on strategic realignments rather than large-scale downsizing.

India, however, stands out as a region of growth for Microsoft. As the company deepens its investments in AI and skilling initiatives, it underscores the strategic importance of India in its global operations.

As the tech landscape evolves, Microsoft’s commitment to fostering AI innovation and creating jobs in India signals a promising future for the region. While other markets face uncertainties, India remains central to Microsoft’s vision of an AI-first world.

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Topics: Talent Management, #Layoffs, #HRTech, #HRCommunity

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