Uncertain local impact of 10,000 layoffs from Microsoft

After, after Microsoft Yesterday it announced that it would cut 10,000 positions in its global workforce of 221,000 employees, the company reported. Business Through a spokeswoman that “no expressions will be expressed locally to Microsoft”.

Now, the news comes in the middle of an announcement closing process From the Microsoft plant in Humacau, which is supposed to end in 2024 and will affect 78 employees, as confirmed by the Ministry of Economic Development and Trade in September 2021.

As part of this process, Microsoft included in its fiscal year-end 2022 reporting to the U.S. Securities and Exchange Commission (SEC) that it transferred “some of the intangible property of our subsidiary in Puerto Rico to the United States. The transfer of the intangible property resulted in a net tax benefit of $3.3 billion.” dollars during that period.

In parallel, Microsoft has been moving in recent years to provide sales, support, and development personnel from Puerto Rico to serve the Caribbean and Central America, which is currently under the direction of General Manager Daniel Verciuel.

The mass layoffs were announced yesterday by Microsoft CEO Satya Nadella on the company’s blog: “We will align our cost structure with our revenue and where we see consumer demand. Today, we are making changes that will result in 10,000 job cuts from our total workforce by the end of the year.” Third quarter of fiscal year 2023.”

“It is important to note that while we are eliminating roles in certain regions, we will continue to recruit in key strategic areas,” Nadella said in his writings.

Case in point, at the time of this post, Microsoft had four software developer opportunities available in Puerto Rico on the professional social network LinkedIn. All opportunities to work from home are identified. Added to this are more than 500 vacancies in Latin America.

Layoffs will cost $1.2 billion

The move to lay off 5% of Microsoft’s global workforce will cost Microsoft $1.2 billion for severance packages and allowances for laid-off employees, as well as office rent consolidation, according to the CEO.

In his letter, the executive said the “difficult but necessary” layoffs would be done with “dignity and respect.” This includes that eligible employees from the United States will receive higher-than-normal allowances, a six-month health coverage extension, transitional services, and be given 60 days advance notice, “regardless of whether or not such advance notice is legally required.” aggravating. He also made it clear that benefits earned by employees outside the United States will comply with the labor laws of their home countries.