Microsoft Will Cut 18,000 Jobs in the Next Year

Microsoft Will Cut 18,000 Jobs in the Next Year

Satya Nadella

About 13,000 positions will be cut in the next six months, largely from the recently-acquired Nokia Devices and Services.

Microsoft CEO Satya Nadella announced major downsizing in an email sent to Microsoft employees early this morning. Rumors about the scope of the announcement have been circulating since Nadella alluded to big changes in a company-wide memo last week. Microsoft's workforce will be reduced by up to 18,000 jobs, with more than half coming from Nokia Devices and Services. Microsoft acquired Nokia's Devices and Services division, and its 25,000 employees, in a $7.2 billion deal in April.

"[W]ork toward synergies and strategic alignment on Nokia Devices and Services is expected to account for about 12,500 jobs, comprising both professional and factory workers," says Nadella. "We are moving now to start reducing the first 13,000 positions, and the vast majority of employees whose jobs will be eliminated will be notified over the next six months." The cuts are driven by Microsoft's shifting focus away from devices and a push to simplify their work. Part of the cuts will flatten Microsoft's organizational structure, reducing the number of managers.

The job cuts announced today are the largest in Microsoft's history. The last major round of layoffs was in 2009, when Steve Ballmer let go 5,800 employees. Mergers between technology companies often go hand in hand with layoffs. When Google acquired Motorola in 2011, around 6,000 employees were let go. Google later sold Motorola to Lenovo.

Microsoft's Xbox Division is not expected to be affected by these layoffs. The announcement email does not mention the Xbox Division. Last week, Nadella reaffirmed his commitment to the Xbox brand. Sales of the Xbox One have doubled in the US since the Kinect was removed as a mandatory component.

Source: Microsoft

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Let me get this straight.

Seven billion and none of it goes towards job securities?

Luckily for me, I work for a Microsoft partner, not Microsoft directly.

Alpha Maeko:
Let me get this straight.

Seven billion and none of it goes towards job securities?

Err what are they supposed to do keep a loss making divisions going? The only reason why they own Nokia is because they were on the verge of bankruptcy. Its either some go now all they all go later.

Alpha Maeko:
Let me get this straight.

Seven billion and none of it goes towards job securities?

Those guys at the top need their own small private islands. What, you expect them to do without them this year? I mean, sure, they're the ones making all these bad decisions, but you can't expect THEM to pay for their mistakes. That's what 18,000 other faithful employees that only did what they were told to do are for.

Alpha Maeko:
Let me get this straight.

Seven billion and none of it goes towards job securities?

Is there a benefit to maintaining a bloated workforce that lacks cohesion after a large acquisition that both implies and necessitates a change in the company's direction? You realize how competitive the mobile market is, and that MS hasn't exactly been stellar in its markets nor run efficiently, right?

MS employs skilled professionals and has pledged to assist with employment (on top of severance packages). Are we just supposed to be angry because it's a wealthy corporation that technically could afford to keep superfluous (and costly) positions?

AgedGrunt:

Alpha Maeko:
Let me get this straight.

Seven billion and none of it goes towards job securities?

Is there a benefit to maintaining a bloated workforce that lacks cohesion after a large acquisition that both implies and necessitates a change in the company's direction? You realize how competitive the mobile market is, and that MS hasn't exactly been stellar in its markets nor run efficiently, right?

MS employs skilled professionals and has pledged to assist with employment (on top of severance packages). Are we just supposed to be angry because it's a wealthy corporation that technically could afford to keep superfluous (and costly) positions?

Yeah, didn't you know that corporations must employ as many people as possible with no regards to profitability or purpose?

Finnish press is all about this news right now. Lots of warms feelings towards Microsoft all-around.

The cuts are driven by Microsoft's shifting focus away from devices and a push to simplify their work.

So let me get this straight... Acquire Nokia, and then "shift focus away from devices"?

I mean, don't get me wrong; if there's going to be any chance that customers like me purchase Windows 9, a shift away from devices is their best hope. I never thought acquiring Nokia was a particularly great idea in the first place; it seemed like a desperate attempt to push up the woefully under-represented Windows phone. But this timing... Is the aim to make it seem like Ballmer was the sane one?

My sympathies to those who lost their jobs. Morale at the Nokia center can't exactly be blossoming right now.

kuolonen:
Finnish press is all about this news right now. Lots of warms feelings towards Microsoft all-around.

Didn't Nokia allowed a MS mole into their board of directors whose decisions eventually lowered the company's value and led to acquisition by MS? I mean it seems to be kinda their fault.

Gota love Nadella. states hes moving away form services and into devices.
Pushes the cloud (service) and fires people from hardware (devices).

I think this new CEO will be a lot of fun!

albino boo:
The only reason why they own Nokia is because they were on the verge of bankruptcy. Its either some go now all they all go later.

The only reason why they own Nokia is because they managed to place thier own man for their CEO which started Nokias share price drop from first day till MS bought them. Basically it was sabotaged.

Strazdas:
Gota love Nadella. states hes moving away form services and into devices.
Pushes the cloud (service) and fires people from hardware (devices).

I think this new CEO will be a lot of fun!

albino boo:
The only reason why they own Nokia is because they were on the verge of bankruptcy. Its either some go now all they all go later.

The only reason why they own Nokia is because they managed to place thier own man for their CEO which started Nokias share price drop from first day till MS bought them. Basically it was sabotaged.

Nonsense, Nokia used to be the dominant mobile phone producer but the rise of the smartphone wiped out their sales. Falling sales means falling share price. Microsoft was looking to get into the device market so they bought the company. Google did the same with Motorola, in the same circumstances

 

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