Microsoft, one of the world’s largest technology companies, has announced that it will be laying off 10,000 employees as part of a restructuring effort.

The layoffs, which will affect both full-time and contract employees, will primarily impact the company’s sales and marketing divisions. Microsoft stated that the layoffs are part of a plan to “streamline operations” and “redefine the company’s sales organization.”

The layoffs come as a surprise, as Microsoft has been performing well financially in recent years. However, the company has been facing increased competition in the technology market, and the restructuring is likely an effort to stay competitive.

In a statement, Microsoft CEO Satya Nadella said, “We are taking steps to notify some employees that their jobs are under consideration or that their positions will be eliminated.” He went on to say that the layoffs are “difficult decisions” but are necessary for the company to continue to innovate and grow.

The affected employees will receive severance pay and outplacement support, and Microsoft will also be offering “retraining and re-skilling opportunities” for those who are interested.

This decision of layoffs is not unique to Microsoft as many companies are facing similar decisions due to the impact of the COVID-19 pandemic on their business, and the shift to remote work, which have led to a change in the way companies operate. The company’s shares fell by 1.5% after the news of layoffs was announced.

The layoffs are a difficult but necessary decision for Microsoft, as the company looks to streamline operations and stay competitive in the ever-changing technology market. The affected employees will be offered support during this transition and the company will continue to invest in retraining and reskilling opportunities for those who are interested.