(Bloomberg) -- Microsoft Corp. Chief Executive Officer Satya Nadella said the technology industry must learn to be efficient as demand slows.

“During the pandemic there was rapid acceleration. I think we are going to go through a phase today where there is some amount of normalization in demand,” Nadella said at the World Economic Forum in Davos, Switzerland. “We will have to do more with less — we will have to show our own productivity gains with our own technology.”

Bloomberg earlier reported that Microsoft plans to cut jobs in a number of engineering divisions Wednesday, joining the ranks of technology giants that are scaling back as the industry prepares for a prolonged slump. The software giant is forecast to post its slowest revenue increase in years when it reports earnings later this month. Even its star cloud computing segment has begun to wane in the past year.

Still, tech spending should accelerate after the current economic cycle, Nadella said. He touted technologies such as artificial intelligence as being able to boost growth. 

Nadella later said that many companies have a “productivity paranoia,” toward their workers. “Every leader thinks that somehow they’re not being productive, but everyone who’s working in the organization feels burned out.”

--With assistance from Dina Bass.

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