In what’s being said as one of the companies biggest lay-off’s to date, Microsoft has announced that they’ll be cutting 18,000 jobs from the company by March 2015. Unsurprisingly most of those jobs, around 12,500 to be specific, will be from the recently acquired Nokia Devices & Services Division, “comprising both professional and factory workers.” It seems Microsoft’s focus has now shifted onto online services, apps and devices.
“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,” says Nadella in a blog post. The move is part of a cost cutting programme for the firm which is expected save around £351m. In total, the company will be cutting around 14% of its work force.
“Our workforce reductions are mainly driven by two outcomes: work simplification as well as Nokia Devices and Services integration synergies and strategic alignment,” says Nadella. It also seems that Microsoft is keen to strip down management in an effort to make decisions quicker which will likely result in seeing more things from the company. “In addition, we plan 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,” Nadella Added.
For those wondering whether anyone at Xbox has been effected, there were rumours circulating to suggest that marketing teams were being thinned out, thankfully Microsoft Devices group head, Steven Elop, put an end to any rumours, “With a set of changes already implemented earlier this year in these teams, this means there will be limited change for the Surface, Xbox hardware, PPI/meetings or next generation teams.”
As for the remaining 5,000, Microsoft didn’t reveal where those lay-offs will occur but Nadella did state in the memo that the company aims to be more transparent and “later today your Senior Leadership Team member will share more on what to expect in your organization.”