Microsoft has come under fire after details of the gathering held in Davos, Switzerland, left the company’s workers more than a little stung.
The Wall Street Journal it was reported this week that Microsoft hosted an exclusive event for around 50 people in a Swiss ski resort on Saturday evening, with sources telling the publication that the attendees had been treated to a live performance by the great musician Sting. The theme of the party is sustainability, accordingly WSJ.
Invitation to the event WSJ described on Wednesday as “intimate”—reportedly including some of the company’s most senior executives.
The next day, Microsoft announced it would cut 10,000 jobs – nearly 5% of its workforce – citing “macroeconomic conditions and changing customer priorities.”
This marks the biggest round of layoffs at the company since 2014. At the end of last year, the company announced it would let go of 1,000 workers.
In an email to employees on Wednesday, CEO Satya Nadella said some workers will be told their jobs will be cut, adding that the reductions will end in the third quarter of 2023.
“We will treat our people with dignity and respect, and act transparently,” he said. “This decision is difficult, but necessary.”
“We’re going through significant change,” Nadella told the workforce. “We see organizations in every industry and geography taking precautions as some parts of the world are in recession and other parts are anticipating.”
Microsoft is just the latest giant in the tech sector to announce massive job cuts. Amazon, Twitter and Salesforce are among the many tech companies that have also announced layoffs in recent months.
‘Seriously’
Some Microsoft employees told the WSJ that the turn of events between Tuesday and Wednesday does not look good for the tech giant.
As details emerged of the company’s gathering in Davos—where the rich and powerful from around the world gather for the World Economic Forum’s annual flagship conference—the company also faced criticism on social media, with some dubbing the company’s “hypocritical” move and “looking bad”.
Rita Gunther McGrath, professor at Columbia Business School and author End of Competitive Advantage, said in a tweet that week Microsoft has left a firm reputation which is somewhat tarnished.
“I’m a fan of Satya Nadella, but this is very bad executive symbolism,” he said.
Angus Norton, CEO of Seattle-based Bodhi Venture Labs and a former VP at Microsoft, says of the tech titan’s PR mistakes that “the optics are not good.”
“I think it’s easy to forget that the term ‘job cuts’ = ‘livelihoods affected’,” he said in a LinkedIn post on Thursday. “Behind every ‘cut’ is a human being, a family, a mouth to feed.”
A representative for Microsoft was not available for comment when contacted by fortune.
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