Beleaguered Microsoft to axe up to 18,000 employees over the next year

“Microsoft said Thursday that it planned to eliminate up to 18,000 jobs over the next year in a shake-up intended to help the company move more quickly in the market,” Nick Wingfield reports for The New York Times. “The cuts are the largest in the company’s 39-year history, representing about 14 percent of its work force.”

“Microsoft will make the deepest cuts from the businesses it acquired from the Finnish phone maker Nokia. About 12,500 of the jobs being eliminated will come from the Nokia groups,” Wingfield reports. “That is about half the number of employees who joined Microsoft from Nokia a few months ago when it completed its acquisition of the company’s mobile business. In related news, Microsoft said it would no longer make Nokia phones based on the Android operating system, switching its low-end phones to Microsoft’s Windows Phone software.”

“Microsoft said it would take a charge of $1.1 billion to $1.6 billion to cover severance and related costs from the layoffs over the next year,” Wingfield reports. “Previously, the largest layoffs at the company were in 2009, when about 5,800 people were affected.”

Read more in the full article here.

MacDailyNews Take: Karmic.

Vested interests are going to change. And, I think we’ve embarked on that change… We like to talk about the post-PC era, but when it really starts to happen, it’s uncomfortable. – Steve Jobs, June 1, 2010

Death is very likely the single best invention of life. It is life’s change agent. It clears out the old to make way for the new. – Steve Jobs, June 12, 2005

[Thanks to MacDailyNews Reader “chinstrap” for the heads up.]

Related articles:
Beleaguered Microsoft CEO lays groundwork for mass layoffs, yet another rearrangement of the deck chairs – July 11, 2014
Beleaguered Microsoft’s Windows Phone: Dead as a doornail – July 9, 2014
Apple is well on its way to devastating Microsoft – July 7, 2014

37 Comments

  1. I thought it was talking about the Axe body stuff, that maybe the employees weren’t being good about their hygiene.
    Especially after seeing some of Balmer’s shirt stains.

  2. Death? Please. Call me when Microsoft’s share of the PC market drops below 80%, or when they cease to be the #1 enterprise software company, or when they stop being the #3 (and gaining) cloud company.

    Microsoft has 130,000 employees, people. Going down to “only” 100,000 means what? Still being one of the biggest and most successful software companies in the world.

    Microsoft could solve their problems tomorrow by:
    A) finding a good Linux distro and commercializing it for desktop, tablet and phone (in other words steal Canonical’s idea)
    B) using their vast army of programmers to create apps for their own app store
    Of course, they could have/should have done both 4 years ago. They still can, any day now …

    1. Down to 80 percent? I remember when they had 98 percent in everything. Wow! It will be sad when tablets replace all those XP related hardware. Whom ever gets the old XP hardware replacement to tablets will drop Microsoft below 50 percent.

      1. If I recall correctly (I’ve been Linux-free for 6 years), part of the Linux license requires that it be distributed for free, which would be yet another nail in their WIndows coffin.

        And besides, people have been harping about “Linux on the desktop” for nearly 20 years. I’ve yet to see anything that could even *remotely* be considered “ready for the masses.”

        Ubuntu is the closest I’ve seen, and even as an IT professional myself, I still found it a pain in the rear. Want to install an app? Better be versed in navigating RPM hell, tracking down missing libraries, etc, etc. Yes, Ubuntu made those tasks *less* common and needed, but they still weren’t avoidable.

        Note: I was last using Ubuntu 2010, so this may be slightly out of date. Still, I hardly see Microsoft as a company who will bring user-friendliness to a Linux distro. 😀

  3. Nothing motivates employees more and makes them strive to create innovative products then to see 14% of the co-workers given the pink slip.

    Fear is a powerful motivator. Unfortunately, it motivates people to leave or to do nothing that would make them stand out.

    MS is doomed.

  4. This news comes 5 days after Nadella’s 3100 word essay essentially saying, ‘People are about to get fired, so we can increase productivity’, and 2 days after the Apple-IBM announcement.

    Interesting…

  5. I feel sorry for the workers specially the 12,500 who didn’t even choose to work for M$.
    Some may argue that they were going to be fired anyway as Nokia wasn’t doing very well before being purchased by M$.

    What about the remaining 5,500? that number is only 300 short of the 5,800 who were fired in 2009.
    In conclusion: Nuttella’s performance is almost as good as Ballmer’s

  6. Blamer quit because this was the future. Instead of buying the LA Clippers he should use that 2 billion to give each of the 18K employees a severance of $111,111.00. Interesting math..

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