GitHub, the software development and version control service provider that is owned by Microsoft, has announced plans to cut 10% of its workforce and move the rest of its employees to remote work in an effort to secure its financial stability.

In an email to employees, CEO Thomas Dohmke explained that the company would be aligning its work with areas that have the greatest impact on its goals and customers' needs. Unfortunately, this will result in a reduction of GitHub’s workforce by up to 10%. The affected employees, who will receive severance packages and career transition assistance services, will leave the company by the end of the financial year.

GitHub has been shifting towards a remote work environment in order to reduce costs. The company, which has seen low utilization rates in its offices around the world, plans to move towards a fully remote work environment.

The company will continue to use Slack for day-to-day collaboration and will increase its laptop refresh cycle and move to Microsoft Teams for all video collaboration. The company said that it will not vacate its offices until the end of its lease.