Microsoft announced on Wednesday that it will cut 10,000 jobs in a bid to save costs and refocus on strategic priorities. The layoffs will affect less than 5 percent of the company's global workforce of 221,000 employees. Microsoft said the cuts are necessary to remain a consequential company in the tech industry. "These are the kinds of hard choices we have made throughout our 47-year history to remain a consequential company in this industry that is unforgiving to anyone who does not move with speed and agility," said Microsoft CEO Satya Nadella in a statement. The job cuts come as the tech giant looks to focus on strategic priorities, such as artificial intelligence. Microsoft has seen its stock price rise in recent months, with the company's market value now topping $1 trillion. The layoffs are expected to be completed by the end of June 2020. Microsoft said it will offer severance packages to those affected and provide them with outplacement services.