Microsoft today announced that a major restructuring effort that will see it cut some 18,000 jobs over the next year. The Nokia Devices and Services business unit will account for the majority of these cuts with some 12,500 positions, including both professional and factory workers, to be eliminated.
The cuts represent 14% of Microsoft’s workforce, which jumped by 25,000 employees when it acquired the Nokia Devices and Services unit earlier this year. The majority of employees who will lose their jobs can expect to learn of their fate in the next six months.
In making the announcement today, Microsoft CEO Satya Nadella promised:
My promise to you is that we will go through this process in the most thoughtful and transparent way possible. We will offer severance to all employees impacted by these changes, as well as job transition help in many locations, and everyone can expect to be treated with the respect they deserve for their contributions to this company.
Nadella also promised that Microsoft will become “more agile and move faster” with these cuts. He envisions fewer management layers, flatter organizations with people managers having greater control and accountability and is looking to increase trust between teams.
As for the Nokia group, Nadella will further integrate into Microsoft. In a bid to “win in the higher price tiers,” he promises more “breakthrough innovation” that will see some Nokia X product designs become Lumia products running Windows.
It will be interesting to see what Microsoft’s smartphone lineup looks like in a year.
Source : Microsoft