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Microsoft announces 18,000 job cuts with Nokia to bear the brunt

Satya Nadella announces biggest staff cull in the company's history
Thu Jul 17 2014, 13:16

Microsoft CEO Satya Nadella standingMICROSOFT HAS ANNOUNCED plans to make 18,000 job cuts, the biggest in the company's history, with 12,500 staff to go from the firm's recently acquired Nokia devices division.

In a letter sent to all Microsoft employees, CEO Satya Nadella announced the job cuts, which will take place across the next 12 months and affect 14 percent of Microsoft staff. He also confirmed that, as expected, Nokia will bear the brunt of the job cuts, with 12,500 of its 30,000 staff facing the chop.

"We will begin to reduce the size of our overall workforce by up to 18,000 jobs in the next year," Nadella said. "Of that total, our work 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."

"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."

Satya added that while the firm will be axing 18,000 jobs, a huge increase compare to Microsoft's previous biggest staff cull of 5,800, it will be adding new employees across the business.

"It is important to note that while we are eliminating roles in some areas, we are adding roles in certain other strategic areas.

"My promise to you is that we will go through this process in the most thoughtful and transparent way possible. We will offer severance to all employees impacted by these changes, as well as job transition help in many locations, and everyone can expect to be treated with the respect they deserve for their contributions to this company."

In the letter, Nadella also announced plans to pull the plug on Nokia's Android smartphone venture. He said that future Nokia X devices will fall under the firm's Lumia branding, and will run Windows Phone instead of Google's mobile operating system.

Nadella promised to reveal more details about the company's restructuring during its earnings call on 22 July. µ

 

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