Microsoft CEO Satya Nadella has confirmed in a blog post that the company will be letting go of 10,000 employees starting today through to March, the company’s third quarter of its financial year (which started last July). While Nadella's statement was coated in fairly technical language, he made clear that the firm would be supporting employees that are laid off for several more months.
Nadella said that the jobs being cut represent less than 5% of the total employee base and while it's letting people go, it is still hiring new people in “key strategic areas” so some of those let go could find a new role if they meet the requirements.
To help affected employees, Microsoft will provide benefit-eligible employees with above-market severance pay, healthcare coverage for six months, continued vesting of stock awards for six months, career transition services, and 60 days of notice prior to termination to help people prepare. Employees affected outside the US will get similar benefits that align with those being offered to workers in the US.
“I want to extend my deepest thanks and gratitude to everyone who has contributed to Microsoft up to this point and to all of you who will continue to contribute as we chart our path ahead”, Nadella said, speaking directly to those affected. “Thank you for the focus, dedication, and resilience you demonstrate for Microsoft and our customers and partners each day.”
It’s worth noting that 60 days of advance notice could be very valuable for affected employees. Data issued by ZipRecruiter in December showed that 79% of employees that were laid off in tech last year managed to find new jobs in the first three months of looking. If this continues, those laid off from Microsoft could find work elsewhere by their termination date.