Microsoft (MSFT) confirms 10,000 job cuts, less than 5% of workforce; projects an EPS hit
By Senad Karaahmetovic
Microsoft (NASDAQ:) has announced plans to slash its global workforce by approximately 10,000 people by the end of its third fiscal quarter.
“This represents less than 5 percent of our total employee base, with some notifications happening today. It’s important to note that while we are eliminating roles in some areas, we will continue to hire in key strategic areas,” CEO Satya Nadella said in an email to employees.
Moreover, the tech behemoth said it will make “changes to our hardware portfolio, and lease consolidation to create higher density across our workspaces.”
As a result, the company expects to incur a $1.2 billion hit in its second fiscal quarter or a $0.12 impact to diluted earnings per share (EPS).
“These decisions are difficult, but necessary,” Nadella added.
Microsoft stock was up about 0.6% in premarket trade on Wednesday.
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