Microsoft Corp to lay off 10,000 employees, cut 5% of a global workforce

lay off 10,000 employees

On Wednesday, Microsoft Corp. announced a round of layoffs while confirming in a filing with the Securities and Exchange Commissions (SEC) that 10,000 employees would be laid off as a part of ‘workforce reduction’ procedures that the company is going to acquire in response to ‘macroeconomic conditions and changing customer precedences.’

The news occurred as a significant overabundance continues to pervade the technological industry, with Salesforce recently declaring that it was cutting its workforce by 10%, influencing some 7,000 workers, while Amazon is in the kernel of cutting 18,000 from its headcount.

Meanwhile, Microsoft undergo at least a couple of smaller rounds of layoffs in the previous year; the latest reduction represents a sizable loaf of its workforce which was estimated to be nearly 5% of its 221,000 employees worldwide.

The company further stated that the layoffs will be initiated from now through to the end of Q3 2023, while it also plans to blend some of its office tenures to “create higher density across our workspaces.”

However, in terms of severance, Microsoft stated that the U.S.-based employees would acquire “above-market severance pay,” though they didn’t elaborate on what that means. The company also said that those affected would continue receiving healthcare perks for 6 months, career alteration services, and 60 days notice prior to dissolution.


Satya Nadella, CEO of Microsoft Corp, had sent in an email memo to employees, following a familiar theme to other tech companies that have declared extensive layoffs over the previous year. But, predominantly, as the company’s customers surged their digital spending during the pandemic, they’re now reducing their spending due to the downshift of the global economy.

Nadella stated in a memo, “As we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less.”

“We’re also seeing organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one,” he added.

It’s worth noting that while Microsoft is laying off some roles, it still intends to hire in other “fundamentally strategic areas.”

“We will continue to invest in strategic areas for our future, meaning we are allocating both our capital and talent to areas of secular growth and long-term competitiveness for the company, while divesting in other areas,” Nadella expressed further.

“These are the kinds of hard choices we have made throughout our 47-year history to remain a consequential company in this industry that is unforgiving to anyone who doesn’t adapt to platform shifts.”

Microsoft culminated in its cost-cutting proceedings, which will lead to a value of around $1.2 billion in Q2, ensuing from severance pay, changes to its apparatus portfolio, and its “lease consolidation” efforts.

- Published By Team Australia News

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