Microsoft to slash 18,000 jobs in deepest cuts in tech giant's history

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 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.