Official: Microsoft will cut 18,000 people
Microsoft will cut 18,000 thousand employees over the next year, said today the Executive Director Satya Nadella. 12 500 of them are former employees of the mobile division of Nokia, which Microsoft purchased.
Currently the company is working on reducing the first 13,000 positions, and many were laid off will be notified over the next six months, reports CNET.
The main burden of reform will suffer coming from Nokia.
Microsoft is in the process of transformation with the aim to go beyond traditional business software. In other words, Microsoft wants to become a company with activities focused on hardware and cloud services. However, these changes have their price, including the reduction of staff. Earlier this month, Nadella hinted in an open letter on the upcoming major changes aimed at restoring innovation and improvement of the company.
It was quite predictable that the main burden will bear the former employees of Nokia. After closing in April this year, Microsoft joined 25,000 people from the Finnish company, which is a major need in the budget is personnel costs.
It is noteworthy that the head of the division «Devices and services» now is a former CEO of Nokia – Stephen Elop. Microsoft says that it will continue to develop the business of Lumia smartphones, which are crucial to the success of the mobile platform Windows Phone.