On Wednesday, Microsoft said it will let go of 10,000 employees through March 31, as the software maker prepares for slower revenue growth.
In Q2, the company will take a $1.2 billion charge related to severance costs, changes to the hardware portfolio, and the cost of lease consolidation.
“I’m confident that Microsoft will emerge from this stronger and more competitive.”
– Satya Nadella, CEO of Microsoft
Microsoft CEO Satya Nadella told employees in a blog post, that it would affect around 5% of the workforce who will find out later this week.
US Employees eligible for benefits will receive severance pay above the market, six months of health care, and stock vesting.
In October, Microsoft estimated a 2% revenue growth in Q2, the slowest quarterly growth since 2016.
