Microsoft Corp. has announced plans to eliminate as much as 18 thousand jobs in a bid to improve efficiency and cut-down costs. The company intends to fire as many as 12500 people from the former Nokia devices and services division and refocus the business unit to Windows Phone and smartphones.
Microsoft will begin to reduce the size of its overall workforce by up to 18,000 jobs in the next year. As Microsoft is looking forward synergies and strategic alignment, workers from the former Nokia devices and services are expected to account for about 12,500 jobs, comprising both professional and factory workers. Microsoft 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.
“It is important to note that while Microsoft is eliminating roles in some areas, we are adding roles in certain other strategic areas,” said Satya Nadella, chief executive officer from Microsoft. “My promise to you is that we will go through this process in the most thoughtful and transparent way possible. Microsoft will offer severance to all employees impacted by these changes.”
The CEO of Microsoft outlined two major initiatives the restructuring of Microsoft:
- First, Microsoft will simplify the way Microsoft work to drive greater accountability, become more agile and move faster. As part of modernizing its engineering processes the expectations Microsoft have from each of its disciplines will change. In addition, Microsoft plans to have fewer layers of management, both top down and sideways, to accelerate the flow of information and decision making. This includes flattening organizations and increasing the span of control of people managers. In addition, its business processes and support models will be more lean and efficient with greater trust between teams. The overall result of these changes will be more productive, impactful teams across Microsoft. These changes will affect both the Microsoft workforce and its vendor staff. Each organization is starting at different points and moving at different paces.
- Second, Microsoft is working to integrate the Nokia Devices and Services teams into Microsoft. Microsoft will realize the synergies to which Microsoft committed when Microsoft announced the acquisition last September. The first-party phone portfolio will align to Microsoft’s strategic direction. To win in the higher price tiers, Microsoft will focus on breakthrough innovation that expresses and enlivens Microsoft’s digital work and digital life experiences. In addition, Microsoft plan to shift select Nokia X product designs to become Lumia products running Windows. This builds on its success in the affordable smartphone space and aligns with its focus on Windows Universal Apps.
Tags: Microsoft, Business, Windows, Windows Phone, Windows RT, Nokia, Lumia
Comments currently: 3
Discussion started: 07/26/14 06:50:29 AM
Latest comment: 08/21/14 01:10:16 PM
Can we even wrap our heads around the fact that a company has 18,000 excess employees?
So 18,000 employees, and at a place like Microsoft, I am going to guess that the average salary is about $30 an hour, so in single 40 hour week, those people make $21,600,000. Ouch.
This is like dumping a small town... 18,000 people. Buh-bye folks.
BTW folks, don't forget to to to the unemployment office and file for your measly $320 a week in benefits now!
The Old Fart
08/17/14 04:52:49 AM]
It's criminal to see how big U.S. corporations just eliminate tens of thousands of jobs so the CEO can get a larger multi-million dollar annual compensation package. It's irresponsible and unscrupulous, IMO.
With Microsucks being convicted criminals for defrauding the world with defective O/S and chronic violations of anti-trust law, would you expect anything different?
08/21/14 01:10:16 PM]
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