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Nokia to bear brunt of Microsoft job cuts with 'one in five' facing the axe

Redmond to also shutter Nokia's Oulu R&D labs
Wed Jul 16 2014, 11:21
TechEd 2014 Microsoft logo

NOKIA REPORTEDLY will bear the brunt of Microsoft's impending job cuts, with "one in five" staff at the firm to go.

That's according to Finnish newspaper Helsingin Sanomat, which reports that Nokia staff likely will bear the brunt of the rumoured job cuts following Microsoft's recent takeover of the company. If the rumour is to be believed, one in five Nokia staffers could face the chop, with Microsoft also planning to shut down Nokia's Oulu R&D labs.

Microsoft declined to comment on the report.

News of Microsoft's planned job cuts emerged on Monday, with reports claiming that the staff cull could be the biggest in its history.

Bloomberg heard from inside sources that Microsoft is gearing up to announce mass layoffs, an announcement which could be made as soon as "this week".

Full details are yet to be revealed, but the anonymous sources have revealed that the restructuring "may end up being the biggest in Microsoft history", topping the 5,800 job cuts that the firm made in 2009.

Echoing the latest report out of Finland, the report claims that cuts will largely be made across the firm's recently acquired Nokia devices business, a deal under which Microsoft took on 30,000 additional staff, taking its total number of employees to 127,104 as of 5 June. Bloomberg reports that cuts in this division will likely be made in areas where the two companies overlap.

Layoffs reportedly won't be limited to Microsoft's Nokia division, however. The report adds that Microsoft is planning to make cuts across its global Xbox division, some of which will likely be made in the European operation, which is based in Reading.

Cuts are also expected in Microsoft's engineering department and its global marketing division. Other job cuts might result from changes the firm's CEO, Satya Nadella, is making to the engineering organisation, Bloomberg notes. 

According to some reports, Microsoft could be looking to slash its global work force by around 10 percent, suggesting that over 10,000 staff could soon be given the chop. 

While the report claims that these job cuts will be made public this week, we're putting our money on an announcement next week, when Microsoft is set to announce its second quarter earnings on 22 July. µ


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