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Friday, 19 September 2014 10:42

Microsoft slashes another 2,100 employees Featured

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Microsoft has once again taken the axe to its shrinking workforce, this time laying off another 2,100 employees as the company moves towards its target of cutting 18,000 staff, or about 14% of its workforce.

Newly-minted Microsoft Chief Executive Officer Satya Nadella is attempting the biggest slimdown in the tech giant's history, giving notice to 2,100 employees on Thursday.

Ths 2,100 are in addition to 13,000 laid off in July, which means a further 2,900 are set to be laid off over the next nine months or so.

A spokeswoman for Microsoft said via email, “The reductions happening today are spread across many different business units, and many different countries. We will continue to go through this process in the most thoughtful manner possible, with the deepest respect for affected individuals and recognition of their service to the company.”

The spokersperson confirmed Thursday's cuts were spread over different countries and teams, with 747 of the job losses coming from the Seattle area,.

This is a contrast to the last round of cuts, which was mostly jobs from the recently acquired Nokia division. Microsoft bought Nokia in a deal that closed April 2014, worth US$7.5 billion.

As we reported back in July, as part of its strategy re-think Microsoft announced cuts of up to 18,000 staff over the next 12 months, most of them from the recently acquired Nokia phone division.

Nearly half the 25,000 employees who joined Microsoft as a result of that acquisition will lose their jobs, many more than anybody predicted. The cuts represent 14% of Microsoft’s total workforce, by far the largest cuts it has ever announced.

The cuts follow Nadella’s long memo outlining the company’s ‘cloud first, mobile first’ strategy, while the Nokia name will disappear from the company’s phones. ‘Lumia’ will remain.

In his July public memo to employees about the job cuts, Nadella wrote that “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.”

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