Original story: Microsoft CEO Satya Nadella has confirmed today that the company plans to reduce its workforce by 10,000 jobs through the end of FY23 Q3, which he says "represents less than 5 percent of our total employee base".
Nadella's comments where shared earlier today on the Microsoft website:
"We’re living through times of significant change, and as I meet with customers and partners, a few things are clear. First, as we saw customers accelerate their digital spend during the pandemic, we’re now seeing them optimize their digital spend to do more with less.
We’re also seeing organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one. At the same time, the next major wave of computing is being born with advances in AI, as we’re turning the world’s most advanced models into a new computing platform."
Nadella went on to explain that the company is taking actions grounded in three priorities, which are to "align our cost structure with our revenue and where we see customer demand", to "continue to invest in strategic areas for our future", and to "treat our people with dignity and respect, and act transparently".
He called today's decisions "difficult, but necessary".
"Today, we are making changes that will result in the reduction of our overall workforce by 10,000 jobs through the end of FY23 Q3. This represents less than 5 percent of our total employee base, with some notifications happening today. It’s important to note that while we are eliminating roles in some areas, we will continue to hire in key strategic areas."
"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. U.S.-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 U.S. will align with the employment laws in each country."
The Microsoft CEO didn't confirm whether Xbox would be affected by these job cuts, although various members of the Xbox Game Studios and Bethesda teams have since taken to social media to confirm their jobs have been impacted.
We'll keep you up to date if we hear anything more about this over the next few days.
