Microsoft fires 10,000 employees

After META, Amazon and several other IT companies, Microsoft on Wednesday said that it was laying off 10,000 workers.

New York, Jan 18: Microsoft is firing 10,000 workers or almost five per cent of its total workforce, the company announced on Wednesday.

It took the decision to cut jobs to align its cost structure with revenue and customer demand. "Today, we are making changes that will result in the reduction of our overall workforce by 10,000 jobs" through the end of the third quarter of fiscal year 2023. This represents less than 5 per cent of our total employee base. We know this is a challenging time for each person impacted," Microsoft's Indian-origin CEO Satya Nadella said.

The bloodbath in the tech sector which started last year is continuing into 2023 and Microsoft is the latest technology company to undertake massive layoffs.

Meta, the parent of Facebook, Instagram and WhatsApp laid off more than 11,000 workers or about 13 per cent of its workforce in November.

Amazon is laying off more than 18,000 employees as global economic uncertainty forces companies to trim costs and restructure operations.

In his mail, Nadella claimed that he is confident that the company emerge from this situation, but "it requires us to take actions grounded in three priorities".

"These decisions are difficult, but necessary. They are especially difficult because they impact people and people's lives - our colleagues and friends. We are committed to ensuring all those whose roles are eliminated have our full support during these transitions. US-benefit-eligible employees will receive a variety of benefits, including above-market severance pay, continuing healthcare coverage for six months, continued vesting of stock awards for six months, career transition services, and 60 days' notice prior to termination, regardless of whether such notice is legally required. Benefits for employees outside the US will align with the employment laws in each country," his mail read.