Microsoft is cutting 10,000 workers, almost 5% of its workforce, in response to “macroeconomic conditions and changing customer 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.
The layoffs represent “less than 5 percent of our total employee base, with some notifications happening today,” Nadella said.
“While we are eliminating roles in some areas, we will continue to hire in key strategic areas,” Nadella said. He emphasized the importance of building a “new computer platform” using advances in artificial intelligence.