Microsoft layoffs: 18K jobs to be cut

by tech on July 17, 2014

The Microsoft cuts are here and they are deeper than expected. Per the Microsoft press release, the move will entail:

“the elimination of up to 18,000 positions over the next year. Of the total, about 12,500 professional and factory positions will be eliminated through synergies and strategic alignment of the Nokia Devices and Services business acquired by Microsoft on April 25.”

That is an even deeper cut than the 10 percent expected by some insiders. Post-Nokia acquisition, Microsoft had about 125,000 employees

Here’s Nadella’s email to employees.

The company, as reported, needs to slim down after its $7.17 billion buyout of Nokia and to focus on key “CloudOS” and productivity tools across devices. The cuts are expected to be substantial — insiders expected up to 10 percent of employees will lose their jobs, which would be a deep cut for Microsoft.

Speculation has been off the charts for more than a month — with one recently departed employee saying that insiders immediately scrutinized and worried about Nadella’s recent marching orders memo and the diagram depicting Microsoft’s “core” (shown below.)

“The amount of texts and emails this morning has been shocking,” he said via email after the memo went out. “Apparently this has been in the works for over 2 months. And if your product group isn’t in that circle he drew, it is likely done … and ‘combined engineering’ everywhere — which is a good thing [is big.] No separate test teams [going forward].”

Microsoft will announce its fourth quarter earnings July 22 and it makes sense for the company to get this news out in advance of that.

Microsoft core

This story will be updated as more details become available.

Related research and analysis from Gigaom Research:
Subscriber content. Sign up for a free trial.

Powered by WPeMatico

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>