Mallika Dureja
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Microsoft confirmed layoffs. The tech company is cutting 10,000 jobs, or 5% of its workforce. “Macroeconomic conditions and changing customer priorities” are causing thousands of layoffs. The tech giant hasn’t disclosed India layoff numbers.
Microsoft CEO Satya Nadella emailed employees that “less than 5% of our total employee base, with some notifications happening today” would be laid off. Microsoft informed employees of the layoffs in a recent regulatory filing. Amazon, Twitter, Meta, and others have laid off large numbers of employees in recent months before Microsoft.
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“While we are eliminating roles in some areas, we will continue to hire in key strategic areas,” Nadella told employees in the same email. Nadella stressed the need for a “new computer platform” using AI. He added, “We’re also seeing organisations in every industry and geography exercise caution as some parts of the world are in a recession and others are anticipating one.”
Microsoft CEO stated in the email that affected employees will receive full support. We will treat our people with dignity and transparency. These tough choices are necessary. They’re hard because they affect our colleagues and friends. “We will support all those whose roles are eliminated during these transitions,” he wrote in the mail.
“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,” Nadella said. “Benefits for employees outside the U.S. will align with the employment laws in each country,” Nadella said, but he didn’t specify India-related benefits. “We are taking a $1.2 billion charge in Q2 related to severance costs, changes to our hardware portfolio, and the cost of lease consolidation as we create higher density across our workspaces,” the Microsoft CEO said.
28,000 layoffs today between Microsoft and Amazon—two behemoth companies that are still raking in *obscene* amounts of money even in the midst of this recession. My thoughts are with all the folks affected. Man. This is heartbreaking and fucking bleak.
— Jessica Cogswell (@awildjessichu) January 18, 2023
Nadella announced layoffs and said Microsoft “will continue to invest in strategic areas for our future, meaning we are allocating both our capital and talent to areas of secular growth and long-term competitiveness for the company, while divesting in other areas.”
