Microsoft will cut 10,000 workers, the company confirmed on Wednesday. 

The move, which will take place at the end of the third quarter, is “in response to macroeconomic conditions and changing customer priorities” according to a filing with the Securities and Exchange Commission.

Additionally, the tech giant will make “changes to our hardware portfolio, and lease consolidation to create higher density across our workspaces. Collectively these actions will result in a charge of $1.2 billion in the second quarter of our 2023 fiscal year, representing a $0.12 negative impact to diluted earnings per share.”