Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Microsoft/Windows
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Microsoft To Lay Off 18,000, Including 50% of Nokia Workers
Microsoft To Lay Off 18,000, Including 50% of Nokia Workers

By Barry Levine
July 17, 2014 10:52AM

    Bookmark and Share
The 18,000 Microsoft job cuts will be made in the sales, engineering and marketing departments, and are expected to be "substantially complete" by the end of this year and "fully completed" by June 30 of next year. Microsoft said in a statement that the pretax charge for the layoffs would be between $1.1 billion and $1.6 billion.
 



The boom has been lowered in Redmond. Following persistent rumors that Microsoft could lay off more people than the previous record of 5,800, the company said Thursday it would eliminate as many as 18,000 jobs.

About 12,500 will come from the 25,000 Nokia employees worldwide that Microsoft is adding with its purchase of that company.

"Of the total [18,000]," the tech giant said in a statement, "about 12,500 professional and factory positions will be eliminated through synergies and strategic alignment of the Nokia Devices and Services business."

By June 30

Including the Nokia employees, the 18,000 layoffs represent the largest employee cuts in the company's history. In 2009, it reduced its workforce by 5,800. Before the cuts announced Thursday, Microsoft employed slightly more than 127,000 workers, including Nokia's.

The reductions will be made in the sales, engineering and marketing departments, and are expected to be "substantially complete" by the end of this year and "fully completed" by June 30 of next year. The company said in a statement that the pretax charge will be between $1.1 billion and $1.6 billion, including $750 million to $800 million in severance and related benefit costs, and $350 million to $800 million in asset-related charges.

The layoffs were relayed to Microsoft employees in an e-mail sent by CEO Satya Nadella, as well as an e-mail from Vice President Stephen Elop to Microsoft Devices Group employees. Elop is the former head of Nokia.

Not 'Terribly Surprising'

"It's important to note that while we are eliminating roles in some areas, we are adding roles in certain other strategic areas," Nadella wrote.

Michael Silver, vice president at industry research firm Gartner, told us he didn't "think those numbers are terribly surprising." He added that the "Nokia ones were inevitable."

"One important thing that's not clear," he said, "is whether the number is 18,000 layoffs or 18,000 net reductions," including hiring new people "with different skills than the ones that are leaving."

In his e-mail, Nadella promised that the company "will go through this process in the most thoughtful and transparent way possible." He added that severance will be offered to all employees "impacted by these changes, as well as job transition help in many locations."

'Two Outcomes'

He also noted that the "workforce reductions are mainly driven by two outcomes: work simplification as well as Nokia Devices and Services integration synergies and strategic alignment."

The smaller workforce, he said, will allow Microsoft to "become more agile and move faster," with fewer layers of management so that information and decision making can be accelerated.

In his e-mail, Elop said the former Smart Devices and Mobile Phones business units will be consolidated "into one phone business unit that is responsible for all of our phone efforts." He also said that engineering units will be concentrated in Salo, Finland, "for future, high-end Lumia products" and in Tampere, Finland, "for more affordable devices."
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Microsoft/Windows
1.   Can One Size Windows OS Fit All?
2.   Design Central to Microsoft Future
3.   Lenovo Still in Small Windows Tablets
4.   How Chrome Eats Your Battery Life
5.   Microsoft Axes Android Phones


advertisement
Design Central to Microsoft Future
New ethos a break from functional past.
Average Rating:
Bing Lets Europeans Be 'Forgotten'
Following in Google's footsteps.
Average Rating:
Microsoft Announces $199 Laptop
Taking on Google's Chromebooks.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
 
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.
 
34 European Banks Hit by Android-Skirting Malware
Criminals have been finding gaping holes in Android-based two-factor authentication systems that banks around the world are using. The result: 34 banks in four European countries have been hit.
 

Enterprise Hardware Spotlight
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.
 
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 
Seagate Unveils Networked Drives for Small Businesses
Seagate is out with five new networked attached storage products aimed at small businesses. The drives are for companies with up to 50 workers, and range in capacity from two to 20 terabytes.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.