Microsoft To Cut 18,000 Jobs By Next Year

Last we it was rumored that Microsoft would be announcing a massive round of layoffs very soon, its biggest yet. It was expected since the company got thousands of additional employees after it acquired Nokia’s devices and services business. In a company-wide memo today Microsoft CEO Satya Nadella confirmed that the company is going to be reducing its overall workforce by up to 18,000 jobs, with 12,500 jobs coming out of the Nokia devices and services team.

Initially Microsoft is moving to reduce positions from the Nokia team and the vast majority of those who will be laid off will be notified within the next six months. The positions comprise both professional and factory employees.

Nadella promises employees that this process will be carried out in “the most thoughtful and transparent way possible.” Microsoft will offer severance to all employees that are laid off and even assist with job transition in many locations.

The CEO also explains how the company is going to work from here on out. The plan is to have fewer layers of management to accelerate flow of information and decision making. Microsoft will also work to integrate Nokia’s devices and services team into the company.

Nadella says that in the near future select Android based Nokia X designs will be shifted into the Windows powered Lumia fold thus aligning with the company’s focus on Windows Universal Apps.

Microsoft got tens of thousands of employees when it acquired Nokia’s business and it was a given that layoffs would be announced soon after the deal was closed. Nevertheless its unfortunate for the 18,000 people who would have to look for work elsewhere.

Adnan Farooqui
Categories: General
Tags: Microsoft, Satya Nadella