July 17th, 2014, 21:36 PM
Microsoft to Lay Off 18,000 Employees in the Next Year
Microsoft is eliminating 18,000 jobs over the next year as it works to integrate the Nokia handset business it acquired in April, CEO Satya Nadella announced on Thursday.
About 12,500 of the reductions are expected to come from Nokia, including professional and factory workers.
In a memo to employees, Nadella also said Microsoft will largely nix work on Android-based devices. "We plan to shift select Nokia X product designs to become Lumia products running Windows," he wrote. "This builds on our success in the affordable smartphone space and aligns with our focus on Windows Universal Apps."
In a separate email to employees, Microsoft exec - and former Nokia chief - Stephen Elop said "we expect to make this shift immediately while continuing to sell and support existing Nokia X products."
"Whereas the hardware business of phones within Nokia was an end unto itself, within Microsoft all our devices are intended to embody the finest of Microsoft's digital work and digital life experiences, while accruing value to Microsoft's overall strategy," Elop said. "Our device strategy must reflect Microsoft's strategy and must be accomplished within an appropriate financial envelope. Therefore, we plan to make some changes."
And change it will. "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," Nadella wrote. "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."