Nuance Communications, Microsoft’s healthcare AI arm, announces job cut plans

Nuance Communications, acquired by Microsoft, is reorganising and cutting jobs to emphasise its healthcare business


After being acquired by Microsoft for $19.7 billion, Nuance Communications, a speech-recognition company, is making job cuts to shift its focus towards the healthcare sector. 

Mark Benjamin, CEO, Nuance, informed employees about the layoffs through an internal memo, as reported by the Boston Globe. However, the exact number of affected employees or departments was not specified in the memo. The company’s decision reflects its strategic realignment towards prioritising its healthcare business under Microsoft’s ownership.

The ongoing impact of economic factors and changing market dynamics is influencing the  industries and driving shifts in  customers’ requirements.

The company said it is committed to invest in businesses to fulfil its present goals and take advantage of future opportunities that come its way.

Microsoft made a significant tech deal in April 2021 by announcing its intention to acquire Nuance Communications, a speech-recognition company, for a whopping $19.7 billion. This acquisition was conducted entirely in cash.

When Microsoft acquired Nuance, it aimed to bring together its solutions and knowledge to introduce innovative cloud and AI capabilities in various sectors, especially healthcare. 

Nuance is a renowned company known for its expertise in conversational AI and cloud-based technology that helps healthcare providers with advanced clinical intelligence.

Microsoft’s acquisition of Nuance for $19.7 billion made it their second-largest acquisition, following the $27 billion purchase of LinkedIn in 2016.

Earlier this year, Microsoft revealed plans to implement company-wide layoffs affecting 10,000 employees.

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