Microsoft announced today that it will lay off 1,900 employees as part of a restructuring plan to streamline its operations and focus on its core businesses. The layoffs will affect employees across various divisions, including engineering, sales, marketing, and finance. Microsoft said that the majority of the affected employees will be notified by the end of March and will receive severance packages and transition assistance.

The company said that the layoffs are necessary to adapt to the changing market conditions and customer demands, as well as to invest in new areas of growth and innovation. Microsoft CEO Satya Nadella said in a statement: “We are taking these steps to ensure that Microsoft remains a leader in the technology industry and a trusted partner for our customers. We are grateful for the contributions of our employees and we are committed to supporting them through this transition.”

Microsoft also said that it will continue to hire in strategic areas, such as cloud computing, artificial intelligence, gaming, and cybersecurity. The company said that it expects to create more than 2,000 new jobs in these fields by the end of the year. Microsoft said that it aims to become a more agile and efficient organization that can deliver value to its customers and shareholders.