CC-Transcript

• 00:00So second wave. And the rationale is also pretty clear Get rid of middle layers of management, streamline teams. Give us the size and scope. Size and scope is that, you know, you hear 4%, 3% a couple of months ago doesn’t sound like that much. But with Microsoft, I mean, these are huge numbers of employees. We have 15,000 people impacted across two waves. And there’s been other little cuts in addition to that. And, you know, folks might say Microsoft, the world’s most valuable company, a lot of days, 96 billion in profit. Why are they doing all this? A lot of it’s that I spending. Right. One day you’re spending 80 billion on data centers and you want to keep your margins flat. In this case, that’s the largest some cut heads. And Brody. The view has been actually the air is getting so good that it means that they can start getting rid of engineers, is doing the job of them. But is that really where the cuts come from this time around? I haven’t seen a ton of evidence that there is that kind of direct employee replacement, but I think companies certainly want to do it right. I mean, a vendor like Microsoft, it is selling its software, telling people, hey, you can do more with less. I think we’d be naive to think they aren’t also attempting to do that internally. We saw with the layoffs a couple of months ago disproportionately hit software engineers. Right. And the marshal spokesperson told us that in this round it will be across teams and geographies. But we know from our reporting largely which divisions and things like Xbox sales and marketing. Correct. Sales and marketing are the really big ones right now. And that’s because it’s the end of the fiscal year. And you generally don’t want to fire salespeople for the fourth quarter because you’re not going to get the results you want. And so, yeah, we’re seeing cuts today that I have reason to believe our focus on those sales employees, what really cuts across the company. And I think it underscores the kind of new reality of the tech market that even if you are in one of the most successful companies, jobs aren’t safe the way they used to be.