Microsoft To Cut About 10,000 Jobs

(RTTNews) - Microsoft Corp. (MSFT) disclosed in a regulatory filling on Wednesday that it will cut about 10,000 jobs by the end of the third fiscal quarter of 2023. This represents less than 5 percent of total employee base, with some notifications happening today.

The tech giant said it is taking a $1.2 billion charge in the second quarter related to severance costs, changes to hardware portfolio, and the cost of lease consolidation as it creates higher density across its workspaces.

The company noted that U.S.-benefit-eligible employees will receive a variety of benefits, including above-market severance pay, continuing healthcare coverage for six months, continued vesting of stock awards for six months, career transition services, and 60 days' notice prior to termination, regardless of whether such notice is legally required. Benefits for employees outside the U.S. will align with the employment laws in each country.

As of June 30, the company had 221,000 full-time employees, including 122,000 in the U.S. and 99,000 internationally.