Microsoft Announces Layoffs of 10,000 Employees Amid Growing Economic Uncertainty

Microsoft announced Wednesday that it will lay off 10,000 employees over the next eight months as part of broader cost-cutting measures. The layoffs, which will affect less than 5 percent of the company’s total employee base, come as the global economy slows and a potential recession looms.

In a securities filing, Microsoft said laid-off workers will receive 60 days’ notice, six months’ health care coverage, stock vesting, and “above-market severance pay.” Speaking at the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday, Microsoft CEO Satya Nadella said the company was not immune to a weaker global economy.

In a memo to staffers Wednesday, Nadella cited changing demand for digital services during the pandemic and looming recession fears. He said the company was taking steps to “ensure we can continue to weather any economic conditions, while also investing in our future.”

Microsoft is the latest tech company to reduce staff because of growing economic uncertainty. Other tech giants, including Apple, Amazon, and Google, have also announced layoffs in recent months.

The layoffs come as Microsoft continues to invest in new technologies, such as artificial intelligence and cloud computing. The company said it will continue to invest in areas that will help it “drive growth and long-term success.”