Microsoft on Wednesday confirmed that it would cut 10,000 jobs by the end of the third quarter of fiscal 2023. In a communique, shared with the employees of the company, Microsoft CEO Satya Nadella said the company is making making changes that will result in the reduction of our overall workforce by 10,000 jobs through the end of FY23 Q3.
It’s important to note that while we are eliminating roles in some areas, we will continue to hire in key strategic areas, he said.
Nadella said those who will be laid off will be treated with dignity and respect. "These decisions are difficult, but necessary. They are especially difficult because they impact people and people’s lives – our colleagues and friends."
Speaking about the benefits that will be offered to those losing jobs, the communique read: "We are committed to ensuring all those whose roles are eliminated have our full support during these transitions. US-benefit-eligible employees will receive a variety of benefits, including above-market severance pay, continuing healthcare coverage for six months, continued vesting of stock awards for six months, career transition services, and 60 days’ notice prior to termination, regardless of whether such notice is legally required. Benefits for employees outside the U.S. will align with the employment laws in each country."
“We know this is a challenging time for each person impacted. The senior leadership team and I are committed that as we go through this process, we will do so in the most thoughtful and transparent way possible.”
“I want to extend my deepest thanks and gratitude to everyone who has contributed to Microsoft up to this point and to all of you who will continue to contribute as we chart our path ahead. Thank you for the focus, dedication, and resilience you demonstrate for Microsoft and our customers and partners each day,” Nadella said.
Speaking about the way ahead, the CEO said Microsoft will align its cost structure with revenue and where it sees customer demand.
The company will continue to invest in strategic areas which would mean that it will allocate capital and talent to areas of secular growth and long-term competitiveness.