Microsoft shares started Wednesday trading with modest gains.
(Photo: Reuters)
Dusseldorf The next big job cut is in the tech industry: Microsoft announced on Wednesday that it would lay off 10,000 employees by the end of the quarter, a little less than five percent of the workforce. The software manufacturer is adjusting the cost structure to sales and customer demand, said CEO Satya Nadella in an internal statement.
The cut will result in expenses of 1.2 billion dollars, the equivalent of 1.1 billion euros. Nadella explained that these were severance payments for employees and costs from the consolidation of offices. As a further factor, the manager named unspecified changes to the hardware portfolio.
Microsoft did not comment to the workforce on which areas are affected. However, the software manufacturer will “continue to make adjustments in key strategic areas,” Nadella emphasized. The aim is to concentrate capital and minds on long-term growth areas.