Microsoft will cut 10,000 workers over the next few months, CEO Satya Nadella announced in a statement released on Wednesday.

Layoffs will begin immediately, according to the statement.

The cuts, which affect less than 5% of the company's workforce, come as Microsoft customers pull back on spending, Nadella said. He added that the company is also looking to expand in new areas, including artificial intelligence.

"[T]he next major wave of computing is being born with advances in AI," he said.

Microsoft is reportedly set to invest $10 billion in OpenAI, the parent behind popular AI writing tool ChatGPT, according to Semafor.

The cuts at Microsoft follow a wave of reductions across the tech industry.

Amazon announced it would lay off 18,000 workers, or about 1% of corporate jobs, earlier this month, citing an uncertain economy.

That same day, Salesforce announced plans to cut 8,000 jobs, or about 10% of its workforce.

As corporate leaders brace for a recession this year, companies around the world are planning to shrink their workforce.

Tech, health care, banking and finance are likely to see the biggest job cuts in 2023, according to Sarah Rodehorst, CEO and co-founder of Onwards HR, which helps companies carry out layoffs. She previously spoke with NPR.

Wall Street giant Goldman Sachs said it was planning to lay off about 3,200 employees in one of the biggest cuts since the 2008 financial crisis.

On Wednesday, Microsoft said it will continue hiring in some "key strategic areas." [Copyright 2023 NPR]