The tech layoff crunch picks up steam with an announcement by Microsoft.

A slowdown has hit Microsoft's core business. 

In response, Microsoft CEO Satya Nadella said it would eliminate 10,000 workers in a blog post entitled "Focusing on our short- and long-term opportunity:"

"We’re living through times of significant change, and as I meet with customers and partners, a few things are clear. First, as we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less. We’re also seeing organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one. At the same time, the next major wave of computing is being born with advances in AI, as we’re turning the world’s most advanced models into a new computing platform.

"This is the context in which we as a company must strive to deliver results on an ongoing basis, while investing in our long-term opportunity. I’m confident that Microsoft will emerge from this stronger and more competitive, but it requires us to take actions grounded in three priorities. 

"First, we will align our cost structure with our revenue and where we see customer demand. Today, we are making changes that will result in the reduction of our overall workforce by 10,000 jobs through the end of FY23 Q3. 

"Second, we will continue to invest in strategic areas for our future, meaning we are allocating both our capital and talent to areas of secular growth and long-term competitiveness for the company, while divesting in other areas.

"And third, we will treat our people with dignity and respect, and act transparently. These decisions are difficult, but necessary."

If it appears things are accelerating to the downside, it's because things are accelerating to the downside. Meanwhile, Signs Say Industrial Production Has Peaked and so a Recession is Imminent.

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