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Microsoft is laying off 10k members of staff

Microsoft is laying off 10k members of staff

Tech giant Microsoft is making around 10,000 employees redundant.

That's according to an email to staff, posted on the Big M's website, in which CEO Satya Nadella said that it would be cutting less than five per cent of its employees around the world. This is due to the macroeconomic conditions.

Microsoft has set aside $1.2 billion to handle severance costs.

"When I think about this moment in time, the start of 2023, it’s showtime – for our industry and for Microsoft," Nadella wrote.

"As a company, our success must be aligned to the world’s success. That means every one of us and every team across the company must raise the bar and perform better than the competition to deliver meaningful innovation that customers, communities, and countries can truly benefit from. If we deliver on this, we will emerge stronger and thrive long into the future; it’s as simple as that.

"I want to extend my deepest thanks and gratitude to everyone who has contributed to Microsoft up to this point and to all of you who will continue to contribute as we chart our path ahead. Thank you for the focus, dedication, and resilience you demonstrate for Microsoft and our customers and partners each day."

This is the third round of layoffs the company has made since July 2022; the first lot was a one per cent cut that month, with under 1,000 roles being culled in October.

Microsoft is far from the only tech and games company to make layoffs. Unlike other tech giants, it didn't ramp up hiring during the COVID pandemic, but it has incurred some huge costs in the acquisition of ZeniMax Media and is set to spend a record-breaking $68.7 billion on Activision Blizzard at the moment. When the deal was announced in January 2022, it was already a huge deal but given how quickly the global economic situation has shifted, it's worth wondering whether Microsoft will regret making such a huge financial commitment. 

PCGamesInsider Contributing Editor

Alex Calvin is a freelance journalist who writes about the business of games. He started out at UK trade paper MCV in 2013 and left as deputy editor over three years later. In June 2017, he joined Steel Media as the editor for new site In October 2019 he left this full-time position at the company but still contributes to the site on a daily basis. He has also written for, VGC, Games London, The Observer/Guardian and Esquire UK.