Microsoft CEO Satya Nadella has announced a realignment of the company’s cost structures, including a 10,000 reduction of its workforce, in a posting on the company’s official blog.
“We will align our cost structure with our revenue and where we see customer demand,” Nadella said. “Today, we are making changes that will result in the reduction of our overall workforce by 10,000 jobs through the end of (the third quarter of the 2023 financial year). This represents less than 5% of our total employee base, with some notifications happening today,” Nadella said.
He added that Microsoft woudl continue to hire in “key strategic areas” and that the lay-offs will be done through the “most transparent manner possible”.
Microsoft will spend $1.2 billion in the second quarter on severance costs, changes to its hardware portfolio, and the costs of lease consolidation.
“These decisions are difficult, but necessary. We are committed to ensuring all those whose roles are eliminated have our full support during these transitions.”
Benefits for employees outside the US, including in Southeast Asia, will align with local employment laws.
