Microsoft announces 18,000 job cuts in largest layoff in company's history
12,500 positions will be lost from the recently-acquired Nokia devices division
Microsoft has announced that it will axe 18,000 jobs in its largest round of cuts ever.
The majority of these losses, some 12,500 positions, will be dropped from Nokia’s Devices and Services business, which the company acquired for $5 billion earlier this year.
This news is part of an ongoing restructuring effort being led by CEO Satya Nadella who took control of the company in February, replacing former-CEO Steve Ballmer who stood down after 14 years in the position.
The company has pledged to save $600 million annually but the cut of 18,000 jobs is still well above the 6,000 losses estimated.
Microsoft's CEO: Satya Nadella said he learned much of his managerial style from playing cricket as a schoolboy in India
In a statement announcing the cuts Nadella said that decision was drive by “two outcomes”: “work simplification” and “strategic alignment”.
He explains that this means making the company “more agile”, “modernizing the engineer processes”, and aligning the Nokia acquisition with “Microsoft’s strategic direction”.
This last point likely means that the company will begin phasing out the production of Nokia phones running Android in favour of Windows Phone devices.
Earlier this month Nadella sent out an email outlining his vision for the company, saying that the company would focus on mobile and the cloud, and grandly stating that Microsoft will “reinvent productivity to empower every person and every organization on the planet to do more and achieve more.”
The company is set to announce its latest financial results on 22 July.
Life & Style blogs
Reader dilemma: 'Our son is 34 with an IQ of 85, and spends all his time in his room. What will happen to him when we're no longer here?'
Why it matters 26 million people have changed their Facebook profile picture to a rainbow flag
YouTube star Loey Lane hits back at hateful comments about ‘fat girls in bikinis’ and how plus-size women promote obesity
The age of inactivity: How laziness is killing us
What do the emojis on Snapchat mean?
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Pentagon accuses Russia of 'playing with fire' over nuclear threats towards Nato
They are neither a 'state' nor 'Islamic': Why we shouldn't call them Isis, Isil or IS
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
- 1 Reader dilemma: 'Our son is 34 with an IQ of 85, and spends all his time in his room. What will happen to him when we're no longer here?'
- 2 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 3 Russian officials ban yoga because it's too much like a religious cult
- 4 German ethics council calls for incest between siblings to be legalised by Government
- 5 Ginger Pride festival to take place next summer, organisers say 'time of bullying gingers is over'
iJobs Gadgets & Tech
£25000 - £38000 per annum: Recruitment Genius: With extensive experience and a...
£34000 - £45000 per annum: Recruitment Genius: With extensive experience and a...
£20000 - £28000 per annum: Recruitment Genius: Looking for an excellent opport...
£16000 - £27000 per annum: Recruitment Genius: This established name in IT Ser...