18000 employees face the axe at Microsoft

July 18, 2014 • Company News, Top Stories

Satya Nadella, Microsoft.

Satya Nadella, Microsoft.

Microsoft is expected to cut up to 18000 jobs over the next year, this is according to a press release by the software giant.

In the press release, the company stated that: ” The cuts are part of a restructuring plan to simplify the organisation and align the recently acquired Nokia Devices and Services business with the company’s overall strategy.”

Back in 2009, around 5800 jobs were cut at the company; however, the upcoming restructuring is now one of the largest to grace the company over the past five years. The cuts are expected to be completed by June 2015.

The official press release from the company reads as follows:

Microsoft Corp. today announced a restructuring plan to simplify its organisation and align the recently acquired Nokia Devices and Services business with the company’s overall strategy.

These steps will result in the elimination of up to 18,000 positions over the next year. Of the total, about 12,500 professional and factory positions will be eliminated through synergies and strategic alignment of the Nokia Devices and Services business acquired by Microsoft on April 25.

The actions associated with the plan are expected to be substantially complete by Dec. 31, 2014, and fully completed by June 30, 2015.

The company expects to incur pre-tax charges of $1.1 billion to $1.6 billion over the next four quarters, including $750 million to $800 million for severance and related benefit costs, and $350 million to $800 million of asset-related charges.

The plans were outlined in an email from Microsoft CEO Satya Nadella to Microsoft employees, and an email from Microsoft Executive Vice President Stephen Elop to Microsoft Devices Group employees. To read Nadella’s email, click here. To read Elop’s email, click here.

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services, devices and solutions that help people and businesses realise their full potential.

Darryl Linington

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