Microsoft is gearing up to lay off about 10 000 employees, equivalent to just shy of 5% of its workforce.
According to the company’s Securities and Exchange (SEC) filing yesterday, the cutting of about 10 000 employees by the end of the third fiscal quarter of 2023 is in response to macroeconomic conditions and changing customer priorities.
Microsoft is also making changes to its hardware portfolio, and consolidating leases to create higher density across its workspaces.
It believes that, collectively, these actions will result in a charge of $1,2-billion in the second quarter of its 2023 fiscal year, representing a $0.12 negative impact to diluted earnings per share.