Microsoft has announced that it will be laying off 10,000 employees by the end of March. This lay-off would affect around 5% of its workforce and more than 1% that the company has laid off.
The affected US employees will receive “above-market severance pay”, healthcare coverage for six months, and continued vesting of stock for six months. They will also be given career transition services and 60 days’ notice before termination.
Employees outside the US on the other hand will receive benefits that align with the employment laws in each country, which is a form of settlement for them.
This job cut is coming days after the company implemented a new unlimited time off policy. Microsoft employees that have an unsaved vacation balance will get a one-time payment in April, and managers will be able to approve unlimited “Discretionary Time Off.”
The policy has had a mixed reception internally at Microsoft, with some employees favoring the flexibility and others warning of guaranteed days and benefits.
Reaction For The Layoff Of Microsoft Employees
Giving the reason for the layoff, Chief Executive Officer (CEO), of Microsoft, Satya Narayana Nadella said, it’s a measure to cut costs because of growing economic uncertainty. As it is revealed, the company is taking a $1.2 billion charge in its Q2 earnings that are due next week
The Global Tech Ecosystem Is Bleeding
Google’s parent company, Alphabet Inc just announced that it is laying off about 12,000 employees which are 6% of its total workforce. This is also coming after Microsoft announced it would lay off 10,000 of its employees.
Why is the global tech industry bleeding so badly? What is/could have gone wrong? We hope they re-strategize and bounce back soon.
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