Microsoft Announces Up to 10,000 Job Cuts, to Invest in Strategic Areas to Remain Competitive

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The “onerous decisions” are crucial on account of financial circumstances.

Microsoft CEO Satya Nadella has introduced as much as 10,000 job cuts, with notices going out to affected staff as early as right this moment. In a memo circulated to employees and revealed on-line, Nadella outlined the financial circumstances which are forcing “onerous decisions” corresponding to this, however said that Microsoft will proceed to put money into “strategic areas” for its future. The overall variety of staff to be laid off signify lower than 5 % of Microsoft’s complete workforce, based on Nadella. The layoffs have been anticipated, with rumors leaking earlier right this moment. As per studies, Microsoft had 221,000 staff as of June 2022, with 99,000 of these exterior the US. Different massive tech firms together with Amazon and Meta have additionally laid off vital numbers of staff not too long ago because of a world financial downturn.

Within the company-wide memo, Nadella cited decreased client spending because the COVID-19 pandemic has grow to be much less extreme, and the truth that many elements of the world are going through financial recession. The layoffs are essential to align value buildings with projected income, and Microsoft will proceed to rent new sources the place wanted. Whereas some affected staff might be notified instantly, the method is anticipated to be accomplished solely by Q3 2023.

Promising to deal with all staff “with dignity and respect”, and act transparently, Nadella dedicated to serving to these laid off by way of enough discover durations, profession transition companies, persevering with employment advantages, above-market severance pay, and inventory choice vesting, in accordance with legal guidelines and rules in varied international locations. It was not instantly clear how lots of the affected staff are within the US and what number of work in different areas.

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