Microsoft to cut up to 18,000 jobs in next year


— 9:06 AM on July 17, 2014

In a message to employees, Microsoft CEO Satya Nadella has announced that the company will axe up to 18,000 jobs over the next year. 12,500 of those positions will be shed from the Nokia Devices and Services division Redmond acquired last year, and the "vast majority" of the cuts will happen over the next six months. Those who are laid off will receive severance, Nadella says, and some will be offered "job transition help."

Apart from the Nokia unit, there's no word on which divisions will be hit by the layoffs. Staff will be added in "strategic areas," so this isn't a universal workforce reduction. More details on where Microsoft is "focusing [its] innovation investments" will be revealed during the firm's earnings call on July 22.

The job cuts are part of a simplification effort that will remove layers of management, resulting in a flatter organizational structure. Nadella promises greater accountability, and he says the company's "business processes and support models will be more lean and efficient with greater trust between teams." Microsoft has a reputation for pitting internal groups against each other, but the new regime seems to be pursuing a less adversarial approach.

   
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