Jan 18, 2023 - Technology

Microsoft is laying off 10,000 employees

Illustration of a calculator with colorful buttons that make up the squares of the Microsoft logo

Illustration: Natalie Peeples/Axios

Microsoft notified employees on Wednesday it will cut 10,000 workers, or less than 5% of its workforce, as it joins other large tech firms in paring staff after years of growth.

Why it matters: Each of these big tech workforce reductions, themselves a response to a softening economy, puts further pressure on the rest of the industry to cut costs.


  • The cuts will be made before the end of its fiscal third quarter, with some employees being notified immediately, according to a memo from CEO Satya Nadella.
  • It is taking a $1.2 billion charge to cover severance and other costs, which will include "changes to our hardware portfolio."
  • Microsoft says it will continue to hire in key areas.

The big picture: Microsoft joins a growing list of large tech firms that have recently cut staff, a roster that includes Amazon, Meta, Salesforce, Twitter and Snap, among others.

What they're saying: "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," Nadella told employees.

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