Microsoft isn’t making the biggest cuts in the industry, but 10,000 staff are still expected to be laid off. This amounts to around 5% of Microsoft’s global workforce. The cuts will take place between now and the third financial quarter of this year — with some employees being notified of their termination as early as today. In a statement, Microsoft CEO Satya Nadella said the layoffs were coming as the company attempts to “align [Microsoft’s] cost structure with our revenue and where we see customer demand.”
Despite the layoffs, Nadella has confirmed that the company will continue to hire in “key strategic areas.” Also connected to the layoffs is the $1.2 billion charge the company has marked for Q2, which will go towards “severance costs, changes to our hardware portfolio, and the cost of lease consolidation,” Nadella said.
Like other tech companies, Microsoft’s former employees will not be leaving empty handed. A fairly generous severance package has been put in place. “U.S.-benefit-eligible employees” are said to be getting “above-market” severance pay, six months of healthcare coverage and stock awards, access to “career transition services,” and 60-days notice of their termination. Outside the United States, Microsoft says that benefits “will align with the employment laws in each country.”
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