Microsoft announces major job cut
Microsoft has announced a major Job Cut that involves some 18 thousand employees, as part of its plan to realign its business focus. The 18 thousand employees will be released over the course of one year. As of now, 13 thousand positions have already been downsized in the first wave.
This will be the largest Microsoft Job Cut in the company’s 39-year history.
With the layoff, the company expects to cut its expenditure by US$600 million per year. The layoff will involve between US$1.1 billion and US$1.6 billion in cost.
More than 60 percent of the affected workers are those in Nokia, which has been acquired by Microsoft before the departure of former CEO, Steve Ballmer. Finnish-origin Nokia had been employing around 25 thousand employees when it was brought under Microsoft’s wing. Currently, Microsoft employs 127 thousand people globally across various countries and continents.
Rumours have been circulating, in the last few months that there will be a big round of Microsoft Job cut taking place.
In one big clue last week, the new CEO Satya Nadella wrote a letter to Microsoft employees (and for public viewing, which was made available in Microsoft website) indicating a large-scale change in the company that includes streamlining and reorganization. A renewed focus on productivity and platforms will be taking place.
It has also been said that the Microsoft team which has been working on Android-based Nokia X phones will have to drop the project and instead refocus on Windows Phone operating system.
Nadella had been urging the company to shift away from software and focus on online services, apps and devices. He is also said to be pushing Microsoft to compete with Apple.
Satya Nadella took the helm as Microsoft CEO in February 2014.
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