Microsoft to lay off 10,000 workers

The company’s chief executive, Satya Nadella, said in a memo to staff that Microsoft will take a $1.2bn charge in the second quarter related to severance costs, changes to its hardware portfolio, and the cost of lease consolidation as it creates "higher density" across its workspaces

Over the last few weeks, other tech companies such as Google parent Alphabet, Amazon and Salesforce have all cut their workforce.

Nadella said: "These decisions are difficult, but necessary. They are especially difficult because they impact people and people’s lives - our colleagues and friends."

He said that US-benefit-eligible employees will receive a variety of benefits, including above-market severance pay, continuing healthcare coverage for six months, continued vesting of stock awards for six months, career transition services, and 60 days’ notice prior to termination, regardless of whether such notice is legally required.

Benefits for employees outside the US will align with the employment laws in each country.

"As a company, our success must be aligned to the world’s success," Nadella said. "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."