Microsoft Chairman and CEO Satya Nadella is predicting that the next two years will be tough for the tech industry due to a leveling off of demand caused by the COVID-19 pandemic and an increasingly volatile global economy.
This week, Nadella told CNBC that the long-term growth prospects for tech companies are good with emerging technologies like artificial intelligence, but the upswing will take some time.
The next two years are probably going to be the most challenging since the pandemic has caused an acceleration in demand, there has been a normalization of that demand, and there is a real recession in large parts of the world, he said.
As a result of pull-forward and recession, we will need to adjust and cycle through the demand cycle, which could result in another massive growth cycle for the tech sector.”
Microsoft announced in October that it was laying off employees, and it is not alone. Amazon is cutting 18,000 jobs and Meta is laying off 11,000 workers.
