The new wave of layoffs of the global tech giants is continuing. Will the chinese market be affected
In recent days, there has been a web-based fermentation of a rumor from the “microsoft suzhou massive retrenchment”, according to which “misofsus county major retrenchment, compensation for n+12 month salary, stock release, one year social security”。
On 2 february, journalists learned from insiders that, to date, microsoft china had not received any documents or information from microsoft headquarters regarding the microsoft suzhou downsizing. “it is certain that the massive downsizing of microsoft suzhou is not true, but suzhou has a number of product lines that could be affected if headquarters adjustments to the relevant product lines may involve microsoft susu. But there is no such information.”
Web-based fermentation has affected the normal work of microsoft's staff in the china region, and to that end, wang yongdong, senior vice president of microsoft global and chairman of microsoft's asia-pacific research and development group, sent internal e-mails to staff to provide clarifications。
Media reports indicate that wang yongdong sent internal messages late in the night that he was not aware of any plans to close the microsoft suzhou site. In his e-mail, wang yongdong stated that similar rumours were usually not responded to, and that this was an exceptional case in which a large number of inquiries drew internal and external attention. Wang yongdong called on staff to return to work, focusing on client and user services. “do not waste precious time on such baseless rumours or spread them further.”
The insider of microsoft also confirmed that wang yongdong's internal mail was valid and that the internal staff had received it. “we usually do not respond to rumours, as stated in his e-mail, or do we focus primarily on client and user services.”
According to the above-mentioned source, microsoft has not yet been given a specific programme to the china region for this round of global adjustments, nor has the next strategy for microsoft china been defined。
There are also microsoft employees on social networks who say they have received company rumours. Although there are no layoffs, microsoft suu kyi has a “division” that exists. According to a microsoft suzhou employee, some of the 2022 scholastic cards were on probation and were not being converted, and more recently, some resources were being withdrawn and “show cards were being withdrawn successively”
According to optimus, microsoft (china) ltd. Was established in november 1995 as a statutory representative, hu yang, with a registered capital of approximately $119 million, with full ownership of microsoft. Ofdi information indicates that the company invested abroad in five companies, with the exception of jiangsu microsoft innovation center ltd., which has been written off, microsoft asia pacific science and technology ltd., hunan microsoft innovation center ltd., henan microsoft innovation center ltd., and yunnan downing innovation technology ltd., all of which are in a sustainable state. In addition, microsoft (china) ltd. Has more than 20 branches, of which 14 have been written off, with nanjing, suzhou, chongqing and tin-free branches in their condition。
Among them, microsoft (china) ltd. Suzhou, founded in 2013, is a predominantly software and information technology service enterprise. Provision of research, design, development and advisory services for software products; development, production, packaging of computer software; development, packaging of hardware products, including preparation and preparation of technical and operational manuals. According to the company's annual report for 2021, the number of people participating in basic old-age insurance for urban workers in that year was 2583。
On 18 january, microsoft announced that, owing to the poor economic situation and changing client needs, 10,000 staff would be laid off globally by the end of march, representing approximately 5 per cent of the total workforce. The downsizing and related changes would result in a loss of $1. 2 billion in the enterprise's earnings in the fourth quarter of 2022. This includes $800 million in staff severance payments。
As at 30 june last year, microsoft had 221,000 employees globally, of which 122,000 were in the united states and 99,000 were overseas. However, microsoft did not reveal where the mass layoffs were concentrated。
American technology company layoffs involve google, mNumerous enterprises such as eta, intel and amazon。
On 20 january, the chief executive officer of the google parent company alphabet, sandal pichai, announced a reduction of staff equivalent to about 6 per cent (12,000) of the company's total global workforce。
According to cnbc reports, on 18 january, a new round of layoffs was officially launched in amazonia, and the staff have received e-mails from the company's global retail manager, doug harrington, and the human resources manager, beth galetti. Previously, the amazon had indicated that it was expected that there would be more than 18,000 job reductions。
At the end of last year, intel announced a cost-cutting plan, and the relevant documents submitted by the company indicated that intel would downsize its office in santa clara, california, as of 31 january。
An important reason for the downsizing of these large technology companies was “uncertain economic conditions and increased uncertainty” and companies had to exercise control over the cost of redundancy. While they have benefited from the dividends of digitalization and home office in the past, as well as from the expansion of manpower and operations, the decline in demand and uncertainty about the future have led to a rapid deterioration in the financial returns of major technology companies, some of which have even lost profits, beginning in the second half of the year. As a result, it is likely that more multinational technology companies in the china region will be affected by global layoffs。
