Microsoft is under fire for hosting a private Sting concert for its executives in Davos the night before it announced mass layoffs
Microsoft has come under fire after details of a meeting it held in Davos, Switzerland, left the company’s employees more than a little concerned.
The Wall Street Journal reported this week that Microsoft hosted an exclusive event for around 50 people at the Swiss ski resort on Tuesday night, with sources telling the publication attendees were treated to a live performance by legendary musician Sting. The theme of the party was sustainability WSJ.
It’s unclear if Microsoft paid Sting to perform at its Tuesday night event, but booking agency AAE Music says it can cost up to $500,000 to hire the artist for a private gig.
Invites to the event – the the WSJ Described as “intimate” on Wednesday – reportedly including some of the company’s most senior executives.
The next day, Microsoft announced it would cut 10,000 jobs — almost 5% of its workforce — citing “macroeconomic conditions and changing customer priorities.”
It was the biggest round of layoffs at the company since 2014. At the end of last year, the company announced that it would lay off 1,000 employees.
In an email to employees on Wednesday, CEO Satya Nadella said some employees would be notified that day that their jobs would be cut, adding that the downsizing would be complete by the third quarter of 2023.
“We will treat our employees with dignity and respect and act transparently,” he said. “These decisions are difficult but necessary.”
“We are experiencing times of significant change,” Nadella also told his workforce. “We are seeing companies across all industries and geographies exercising caution as some parts of the world are in recession and other parts are anticipating a recession.”
Microsoft is just the latest tech giant to announce sweeping job cuts. Amazon, Twitter and Salesforce are among a host of tech companies that have also announced layoffs in recent months.
“Seriously Bad”
Some Microsoft employees said so WSJ that the turn of events between Tuesday and Wednesday was not a good sight for the tech giant.
As details emerged surrounding the company’s meeting in Davos – where wealthy and powerful people from around the world gather for the World Economic Forum’s annual flagship conference – the company also drew criticism from some on social media calling the company’s moves “hypocrisy.” and a “bad appearance”.
Rita Gunther McGrath, professor at Columbia Business School and author of The end of competitive advantage, said in a tweet that Microsoft’s week had somewhat tarnished the company’s reputation.
“I’m a huge fan of Satya Nadella, but that’s really bad leadership imagery,” she said.
Angus Norton, CEO of Seattle-based Bodhi Venture Labs and a former vice president at Microsoft, said of the tech titan’s PR blunder that “the visuals aren’t good.”
“I think it’s easy to forget that the term ‘downsizing’ = ‘impacting livelihoods,'” he said in a LinkedIn post on Thursday. “Behind every ‘cut’ is a person, a family, a mouth to feed.”
Microsoft representatives were unavailable for comment when contacted by wealth.
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