Microsoft is the latest tech company to make thousands of people redundant.
Following the likes of Amazon, Twitter and Facebook, Microsoft has confirmed it will cut 10,000 jobs by the end of the third quarter of fiscal 2023.
The cuts will fall across the company and, according to a memo from CEO Satya Nadella, all those affected will be notified by March.
US employees will receive ‘above-market severance pay,’ as well as healthcare coverage for six months, continued vesting of stocks for six months, career transition services, and 60 days notice.
‘It’s important to note that while we are eliminating roles in some areas, we will continue to hire in key strategic areas,’ Nadella wrote.
‘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.’
It’s not yet clear how many UK employees will be affected and what their severance will be. Nadella simply states: ‘Benefits for employees outside the U.S. will align with the employment laws in each country.’
Microsoft currently employs around 220,000 people worldwide. This is one of the the company’s largest round of cuts – only overshadowed by 2014 when it dismissed 18,000 roles.
Nadella hinted at the bleak outlook for tech companies as the cost of living hits and many countries face economic uncertainty.
‘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,’ he wrote.
‘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 least the employees that don’t lose their jobs can take off as much holiday time as they want.