Microsoft CEO Satya Nadella recently confirmed in an SEC (US Securities and Exchange Commission) Admission The company will lay off 10,000 employees by September. This move comes after a short and quiet round of cuts In October last year, 1000 employees were inducted.
It is not yet known which divisions of the company will be affected by today’s announcement.
Nadella said the reductions “represent less than 5 percent of our total employee base, with some notices happening today. It is important to note that while we are eliminating roles in certain areas, we are making significant strategic changes.” Will continue to recruit across sectors.”
According to Microsoft’s filing, the cutbacks are primarily driven by economic conditions, including customers slowing down and adapting their digital spending following the pandemic and a lingering recession. “The next big wave of computing, with advances in AI” also prompted this shake-up.
The company is allocating US$1.2 billion in the second quarter related to severance costs and other changes, including the company’s hardware portfolio and lease consolidation.
“We will treat our people with dignity and respect and act in a transparent manner,” Nadella said in a statement. blog post, “These decisions are difficult, but necessary. They are especially difficult because they affect people and people’s lives—our allies and friends.
US-benefit-eligible employees, he said, will receive “above-market severance pay, continued health care coverage for six months, continued vesting of stock awards for six months, career change services, and 60 days’ notice before termination.” will receive.” Severance for employees outside the US will depend on their country’s employment laws.
The filing stressed that these decisions are tough choices the company has had to make over its 47 years of existence in order to remain competitive, in an industry that is “unforgiving to anyone who doesn’t adapt to platform shifts. “
Nadella also sought to encourage the surviving team. “It’s showtime—for our industry and for Microsoft. As a company, our success must match the success of the world. It means that each one of us and every team across the company must outperform the competition to deliver meaningful innovation that truly benefits customers, communities and countries. If we accomplish this, we will emerge stronger and thrive long into the future; it’s as simple as that.”
Today’s announcement could come as a ray of hope for investors as Microsoft prepares to report its financial results for the second quarter of its fiscal year 2023 next week. company had to face Largely, in its last earnings call, along with other big tech companies.
