Microsoft is planning to lay off 18,000 employees in one year, of which likely 12,500 are ex-Nokia employees. The plans are unveiled in an email from Microsoft CEO Satya Nadella to all employees of the software giant. Microsoft acquired Nokia Devices and Services division for $7.2 billion.
After Microsoft acquired Nokia, the company had 127,000 employees, a growth of 25,000. Due to the integration of Nokia with Microsoft, several departments had the same function, especially in the divisions focussed on mobile phones. Employees in divisions like Windows, Office, Xbox and Surface are likely on the safe side.Most of the employees who will lose their job will be notified within six months and in the e-mail Nadella also stresses that in some divisions new jobs are created.
Last week Nadella also wrote an e-mail to all employees stating that Microsoft will focus more on cloud and mobile software in the future.
"Making these decisions to change are difficult, but necessary", Nadella wrote in his e-mail today. In total, 14% of the Microsoft employees will lose their job. The reorganisation will cost Microsoft between $1.1 and $1.6 billion. Nadella also writes that Microsoft plans to have, "fewer layers of management" which should make it easier and faster to make decisions and it should result in more productive teams.
Microsoft stock went up with 3% after the news.
