Microsoft will lay off 10,000 employees as it cuts costs

[Murph]

Microsoft will lay off 10,000 employees as it cuts costs

The rumors of massive layoffs at Microsoft were true. In a publicly posted memo from CEO Satya Nadella, the company says it plans to cut 10,000 jobs through its third fiscal quarter, which ends in March. The move is meant to "align [Microsoft's] cost structure" with demand and revenue, according to Nadella — that is, to slash expenses as sales shrink. Customers boosted their digital spending during the height of the pandemic, Nadella says, but they're now scaling back. Numerous countries are either in the midst of recessions or expecting them, the executive adds.

Microsoft will continue to hire in "key strategic areas," Nadella says. The company is taking on a $1.2 billion restructuring charge for the severance costs, consolidating building leases and unspecified changes to its hardware lineup. Nadella notes that US staff will get "above-market" severance pay as well as six months of continued healthcare coverage and stock awards.

www.msn.com/en-us/money/other/microsoft-will-lay-off-10-000-employees-as-it-cuts-costs/ar-AA16tMzt?ocid=msedgntp&cvid=8b96941596d14f6fb52305834739b7a5