invoStock.com - Microsoft, the world's largest technology company, announced on Wednesday that it would eliminate 10,000 jobs, or nearly 5% of its workforce, by the end of the third quarter of fiscal 2023.

Microsoft said that the layoffs would negatively impact 12 cents per share on earnings in the second quarter of fiscal 2023, amounting to a charge of $1.2 billion.

Microsoft CEO Satya Nadella released a letter hours after the decision outlining the company's top three priorities in light of the recent technological developments and ongoing economic uncertainty.

It was necessary, according to Microsoft CEO Satya Nadella, so that the company could concentrate on both immediate and distant prospects.Microsoft has announced that in the second quarter of fiscal 2023, they will take charge of $1.2 billion due to layoffs, which is equivalent to a loss of 12 cents per share.

The layoffs, reported by the media on Tuesday, come after a series of reductions in the previous year.Microsoft confirmed in July 2017 that some positions had been eliminated, and in October, Axios reported that the company had let go of less than a thousand workers across all of its departments.

Microsoft, led by Satya Nadella, is also dealing with a downturn in the PC market due to waning demand for Windows and related products following a brief but widespread upswing.