Whoa, bet you didn’t saw this one coming! The rumors were true, and then some. Microsoft have just made official the largest ever job cut in its history, sending home 18,000 workers in total.
The announcement by CEO Satya Nadella talks about the significant changes that the company is going through, and the need for further reorganization in order to better align with this new strategy. It also alludes to some redundancies and overlaps due to the purchase of Nokia:
“The first step to building the right organization for our ambitions is to realign our workforce. With this in mind, we will begin to reduce the size of our overall workforce by up to 18,000 jobs in the next year.
Of that total, our work toward synergies and strategic alignment on Nokia Devices and Services is expected to account for about 12,500 jobs, comprising both professional and factory workers.”
While the Nokia factor was inevitable, the cut extends further into the core of Microsoft too, and the company will also terminate 5,500 jobs from internal departments.
Cutting jobs is never an easy decision for the management, even if they are a necessary change to keep a company on the right path. But for Microsoft, the results of this active reorganization are already showing, at least in terms of share prices.
One can only hope the employees that are let go get some good severance packages, so as to lessen their financial burdens as they look for alternate opportunities.