Microsoft is laying off 10,000 employees
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.
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.