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Just hours after media reports forecast more layoffs at Microsoft, CEO Satya Nadella confirmed in a blog post that the company would be cutting almost 5% of its workforce, impacting 10,000 employees.  

“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,” Nadella wrote in the blog post.

The chief executive chalked up the downsizing maneuver to aligning its cost structure with its revenue structure while investing in areas that the company predicts will show long-term growth.

(This story has been changed to correct the number for the expected cost to Microsoft of the planned layoffs. The correct number is $1.2 billion.)

Microsoft had reported its slowest growth in five years for the first quarter of its fiscal 2023, due largely to a strong US dollar and an ongoing decline in personal computer sales, causing net income to fall by 14% to $17.56 billion from this time last year.

Strategic hires and investment to continue

“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.

Copyright © 2023 IDG Communications, Inc.


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