Cutting 10,000 jobs; decisions are difficult, but necessary: Microsoft CEO

On January 18, 2023, Microsoft announced that it will be cutting 10,000 jobs by the end of the third quarter of 2023. In a statement shared with employees, CEO Satya Nadella said the company is implementing changes that will result in a reduction of its overall workforce by 10,000 jobs through the end of the third quarter of FY 2023.

In a blog post on Microsoft website Nadella explained, “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.”

In the post, Microsoft also mentioned that they will treat people with dignity and respect and act transparently. These decisions are difficult, but necessary. Nadella said the decisions are especially difficult because they impact people, including their colleagues and friends, and their lives. “We are committed to ensuring all those whose roles are eliminated have our full support during these transitions,” he added. 

Nadella ensured that these employees will get severance pay, career transition benefits, and more. “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.”

“I want to extend my deepest thanks and gratitude to everyone who has contributed to Microsoft up to this point and to all of you who will continue to contribute as we chart our path ahead. Thank you for the focus, dedication, and resilience you demonstrate each day for Microsoft and our customers and partners,” said Nadella.

Furthermore, Nadella said that the company will continue to invest in strategic areas for the future, meaning they will be allocating both capital and talent to areas of secular growth and long-term competitiveness for the company, while divesting in other areas. 

“As a company, our success must be aligned with the world’s success. That means every one of us and every team across the company must raise the bar and perform better than the competition to deliver meaningful innovation that customers, communities, and countries can truly benefit from,” added Nadella.