Microsoft announces 18,000 job cuts

Published July 17, 2014 8:18pm

Microsoft said Thursday it would slash 18,000 jobs from its global workforce over the next year, the majority from the integration of the Nokia unit acquired this year.

Microsoft said the move is part of "a restructuring plan to simplify its operations and align the recently acquired Nokia Devices and Services business with the company's overall strategy."

In an email to employees, Microsoft CEO Satya Nadella talked about "starting to evolve (Microsoft's) organization and culture", saying:

The first step to building the right organization for our ambitions is to realign our workforce. With this in mind, we will begin to reduce the size of our overall workforce by up to 18,000 jobs in the next year. 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.

In a separate email, Microsoft Executive Vice President for Devices & Services Stephen Elop confirmed that the company is now focused on its mobile segment:

We will be particularly focused on making the market for Windows Phone. In the near term, we plan to drive Windows Phone volume by targeting the more affordable smartphone segments, which are the fastest growing segments of the market, with Lumia. In addition to the portfolio already planned, we plan to deliver additional lower-cost Lumia devices by shifting select future Nokia X designs and products to Windows Phone devices. We expect to make this shift immediately while continuing to sell and support existing Nokia X products.

— with a report from Agence France-Presse/TJD, GMA News

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