Layoff Scare: No Escape Even For Take-Over Firms By Tech Giants Like Microsoft Over Macroeconomic Pressures

The layoff scare is underway, and even the tech giants are not backing from it, as observed from the mid of 2022.

In a newest bid, Microsoft Corp makes it to the headlines again with its uncompromising news of employee dismissal in its AI backed speech recognition firm, Nuance.

Barring all the regulatory hurdles, Microsoft had acquired the pioneer in a race to bolster its ambitions in the healthcare industry at a hefty purchase price of 19.7 billion dollars in an all-cash transaction.

How Many More Rounds Of Cost-Cutting To Go Under Surface

Earlier this year, Microsoft had announced the slashing of 10,000 jobs up until the third quarter of FY23.

With more than 220,000 workforce around the world and the synchronous job cuts in the Satya Nadella led tech giant, the employee count marked a drop by 5 per cent globally.

The talk of the town surged when an entire team was axed out in a heartbreaking venture in March 2023, and the fired employees took to social media platforms including LinkedIn to pour their heart out.

The Big Tech Microsoft seems to be completely haunted by the macroeconomic state of affairs all across the globe, and therefore, in the same note, does not wish to offer any jumps in perks to its salaried employees inclusive of its senior leaders.

The Story Of Nuance Layoff

Nuance came to be celebrated as the second most highest take over firm by the Microsoft Corp, only after LinkedIn which was bought in 2016 for a whooping 26 billion dollars.

Nuance Communications had well established itself in machine learning with its natural language understanding and voice recognition, which made it a perfect fit for Microsoft’s expansive research institution.

Be that as may, Mark Benjamin, CEO of Nuance, asseverated that the current workforce reduction had been among the difficult compromise for Nuance, as the speech-recognition firm seeks to devote its attention to the healthcare business in union with its acquirer giant Microsoft.

The Nuance employees were notified by Benjamin through an internal memo, however, no light was put into the exact count of workforce or the departments which would be affected.

Moreover, CEO Benjamin underscored the market trends evolving around the customer requirements as well as the surge in macroeconomic pressures affecting the technology industry in a whole as the reason behind the layoff.

He further underlined the importance of maintaining the key investments of their business in order to capitalize with the futuristic demands and deliver current plans in a virtuous manner.

 

At the healthcare point of delivery, Nuance is capable of providing the real-world implementation of the Artificial Intelligence enterprise, and with the layoff of the workforce, it would focus more on its cloud healthcare segment.

Are Mergers Really A Promising Development?

The rising trend of mergers and its disruption prove to be an utter dismay to all the employees who get to pay the piper trusting their own firm and the incorporation giants who reaps the benefits and sucks them out like dirt.

For the Microsoft team, the acquisition had welcomed about 6500 new employees, the efforts for which the tech giant had commenced from April 2021 itself.

Yet, they now turnout to be as guinea pigs, the trial and tests done and now been shown an unrivalled exit within a span of merely one year.

The hype of all the acquisitions rounds were so overwhelmingly pressed to the audience that neither the public nor the suffered employees had ever imagined such a de trop decision to be put on their tables.

With a significant milestone achieved between the two parties in last quarter of the financial year 2022, no body had predicted that the investment would have such an outcast bearing.

No wonder the global economy is seeing a paradigm shift in its takeover, acquisitions, layoffs, and hiring at low costs, all an indirect means to show a rising economy in terms of profit whereas a slackening economy for the figure of fun.

Proofread & Published By Naveenika Chauhan