Microsoft: 10 thousand employees are laid off due to the company’s financial crisis

Although during the start of the pandemic, technology companies benefited from the amount of demand for equipment, services and others for remote work, today the scenario is different. Since last year, companies like Microsoft have been affected by financial problems within the company, forcing them to lay off staff, on a large scale. In this sense, through a statement on Wednesday the 18th, Satya Nadella, Microsoft’s executive president, stated that he had shed 10,000 employees due to this situation. This would represent 5% of the payroll.

The details were communicated to the Securities and Exchange Commission of the United States (the SEC), among the most outstanding points that Nadella made known are, for example, the global crisis, which has been affecting many countries, who are at risk of fall into recession, so this would cause the economy of the clients to be diminished and therefore, sales are reduced.

In this regard, Nadella explains that during the COVID-19 pandemic, “we saw customers accelerate their digital spending, but now we are seeing them optimize their digital spending to do more with less.”

Layoffs until March

On the other hand, regarding the serious situation of the large layoffs that the technology company is forced to execute, Satya Nadella indicated that this event will continue throughout the month of March of this year, thus generating 10,000 workers they are left without a job.

“These are the kinds of difficult decisions we have made throughout our 47-year history to remain an important company in an industry that does not forgive those who do not adapt to platform changes,” says Nadella.

What will happen to the 10 thousand workers?

Watching over the rights of the company’s personnel and respecting the contractual agreements that govern within Microsoft, Satya Nadella clarified that those workers who will soon no longer be part of the technology company will receive their respective compensation, even “higher than the market ”.

In addition, the announcement continues, they will continue with health coverage “for six months, the continuity of the acquisition of rights over the shares for six months, professional transition services and a notice of 60 days before dismissal, regardless of whether said notice is legally required or not.

It is worth mentioning that at the end of Microsoft’s fiscal year, in June 2022, the company based in Washington, USA had 221,000 full-time workers on its payroll both internally in the company itself and outside from the country. For this reason, according to the annual report presented by Microsoft, they had managed to have a payroll of more than 40,000 workers, a scenario never seen before for the company and today it has been forced to make these drastic decisions.