Microsoft cuts 10,000 jobs as tech layoffs intensify

Microsoft Corp said on Wednesday it would cut 10,000 jobs by the end of third quarter of fiscal 2023, the latest sign that layoffs were accelerating in the U.S. technology sector as companies brace for an economic downturn. The layoffs will result in a charge of $1.2 billion in the second quarter of fiscal 2023, representing a negative impact of 12 cents on per share profit, Microsoft said.The news of layoffs, reported by media publications on Tuesday, follows some reductions last year.

The development has now been confirmed as CEO Satya Nadella has sent an email to employees in this connection. In an internal email, Microsoft CEO Satya Nadella said he is confident that Microsoft will emerge from this situation, but "it requires us to take actions grounded in three priorities".The company said in a regulatory filing Wednesday that had just notified employees of the layoffs, some of which begin immediately.The company said it will also be making changes to its hardware portfolio and consolidating its leased office locations -- all of which are designed to save about $1.2 billion