Microsoft, one of the world’s leading tech giants, has announced that it will cut around 10,000 jobs from its engineering division. The move comes at a time when the company has joined a growing list of tech companies that have been laying off employees recently.
In a blog post, CEO Satya Nadella said the company will continue to invest in strategic areas for the foreseeable future, meaning they will allocate capital and talent to secular growth and long-term competitiveness for the company while divesting in other areas. .
The CEO also said that treating employees with dignity was a top priority. The company will spend $1.2 billion on severance costs in the second quarter, among other things. US-based employees will receive benefits, including severance pay above market, continued health care coverage for six months, vesting of stock awards for six months, career transition services and 60 days’ notice before termination.
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According to Nadella, this decision, although difficult, is necessary for the growth and progress of the company. According to him, the success of Microsoft should be compatible with the whole world. To produce meaningful innovation that truly benefits customers, communities and nations, every team in an organization must raise the bar and outperform the competition.
The company’s move to lay off 10,000 employees by March 31 is a result of slow revenue growth. The company will take a $1.2 billion charge in its fiscal second quarter, which will reduce earnings per share by 12 cents. This action is not unique to Microsoft. Employees have recently been laid off at other tech giants such as Salesforce, Amazon and Alphabet.
Read also: Tech industry in turmoil: Layoffs are on the rise as companies struggle to keep afloat
general question
Q: How many jobs is Microsoft cutting?
A: Microsoft is cutting about 10,000 jobs from its engineering division.
Q: Why is Microsoft cutting jobs?
A: According to CEO Satya Nadella, the business is making adjustments to invest in strategic areas for the future, emphasizing allocating resources and talent to industries with long-term growth potential and competitiveness, while divesting others. Is.