Microsoft to lay off 10,000 employees

By March 2023, Microsoft plans to lay off 10,000 employees due to worsening economic conditions. About this заявил the chief executive officer of the company Satya Nadella.

“Today we are making changes that will lead to a reduction in total headcount of 10,000 people by the end of the third quarter of fiscal year 2023,” said the head of Microsoft.

According to Nadella, this accounts for less than 5% of employees dispersed worldwide. More than 800 workers have already received the relevant notices.

“It is important to note that while removing roles in certain areas, we will continue to hire employees in key strategic areas,” said Nadella.

US employees affected by the cuts have pledged to be notified within 60 days, regardless of legal requirements. They will be entitled to severance pay, continued health insurance, and stock awards for six months. They will also be offered assistance with transferring to another job.

Benefits for employees outside the United States will be in line with each country’s labour laws.

According to The Verge, the cuts affected employees in the HoloLens, Microsoft Edge, marketing divisions, and the gaming studios 343 Industries and Bethesda.

Nadella also said he would incur costs of $1.2 billion in the second quarter of fiscal year 2023, which ends January 25.

“[Costs] associated with severance packages, changes to the hardware portfolio and the cost of lease consolidation as we increase workforce density,” he added.

Today the company employs 221,000 people. The latest cut was one of the largest in the company’s history. In 2014, Microsoft laid off 18,000 people, of whom 12,500 were former Nokia employees, which the tech giant had previously acquired for $7.2 billion.

Earlier in January 2023, Amazon’s CEO announced layoffs of 18,000 employees.

In November 2022, Meta announced layoffs of 11,000 people.

In the same month, Twitter leadership laid off a group of researchers in ethical AI.

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