Most of the
job losses expected to come from firm's Nokia unit, which Microsoft acquired in
April for $7.2bn
theguardian.com,
Jessica Glenza in New York, Thursday 17 July 2014
Microsoft will cut up to 18,000 jobs over the next year as it absorbs its newly acquired Nokia phone business, the company announced on Thursday.
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| Microsoft CEO Satya Nadella outlined plans last week for a 'leaner' business. Photograph: Robert Galbraith/Reuters |
Microsoft will cut up to 18,000 jobs over the next year as it absorbs its newly acquired Nokia phone business, the company announced on Thursday.
The cuts
amount to 14% of Microsoft's global workforce, and represent the deepest in the
tech giant's 39-year history. They come five months into the tenure of chief
executive officer Satya Nadella, who outlined plans for a "leaner"
business in a public memo to employees last week.
Most of the
positions come from Nokia, which Microsoft acquired in April for $7.2bn,
pushing up Microsoft's headcount by 25%, to 127,000.
“My promise
to you is that we will go through this process in the most thoughtful and
transparent way possible,” Nadella said in an open letter on Thursday.
Microsoft
said about 12,500 professional and factory workers will be cut from Nokia's
devices and services division. About 13,000 are expected to receive
notifications in the next six months, Nadella said. All will receive severance
pay; some will receive job placement services.
Nadella
said the cuts represent the fact that Microsoft is starting to absorb Nokia
into the larger organisation.
“It’s
important to note that while we are eliminating roles in some areas, we are
adding roles in certain other strategic areas,” said Nadella. He did not offer
details about what new positions might be added. More details about the
company’s realignment are expected Thursday afternoon and during a public
earnings call on 22 July.
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