What you need to know
- Microsoft Chairman and CEO Satya Nadella confirmed that the company will cut 10,000 jobs by the end of FY23 Q3.
- The move was speculated yesterday and has since been confirmed by Nadella in a message sent out to Microsoft employees and shared with the public.
- The job cuts represent close to 5% of Microsoft's workforce.
Microsoft will cut 10,000, which represents almost 5% of the company's workforce. Speculation of the impending layoffs was first reported yesterday, and it has since been confirmed by Microsoft Chairman and CEO Satya Nadella (opens in new tab). Microsoft shared a message from the CEO that was sent out to the company's employees.
Nadella explained that Microsoft saw increased spending during the pandemic and has since seen a reduction. As a result, Microsoft will eliminate several roles. 10,000 jobs will be cut by the end of FY23 Q3, which ends March 31, 2023.
Below are Nadella's comments regarding the job cuts:
"First, we will align our cost structure with our revenue and where we see 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 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. We know this is a challenging time for each person impacted. The senior leadership team and I are committed that as we go through this process, we will do so in the most thoughtful and transparent way possible."
Microsoft will take a $1.2 billion charge for "severance costs, changes to [its] hardware portfolio, and the cost of lease consolidation" in FYQ2 2023.
Nadella clarified that employees based in the United States that are eligible for benefits will receive "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."
This is a breaking news story, and more information will be added as it becomes available.
Update: Notable departures
Ben Rudolph, who has been with Microsoft for 15 years, will no longer be with the company. He shared the news on his Twitter account. Rudolph has been the Global Creative Director at Microsoft until today's news. Previously, he was the company's Senior Director over Worldwide Content Ecosystem.
Well gang, the reaper came for my team today & my time at @Microsoft is officially up. It's been an amazing 15 years. Thanks for being part of it!I'd love intros/recos to help find my thing. And if you need help with messaging or presentations, I am now available to consult.🙃 pic.twitter.com/j7FPkUizY9January 18, 2023
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Sean Endicott brings nearly a decade of experience covering Microsoft and Windows news to Windows Central. He joined our team in 2017 as an app reviewer and now heads up our day-to-day news coverage. If you have a news tip or an app to review, hit him up at firstname.lastname@example.org (opens in new tab).
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