bit-tech.net

Microsoft to slash 18,000 jobs

Microsoft to slash 18,000 jobs

Microsoft chief executive Satya Nadella has announced that the company is to cut 18,000 jobs - nearly 15 per cent of its workforce - in the coming twelve months.

Microsoft has announced major job cuts at the company with 18,000 staff to be made redundant in the next year, as well as the closure of its Xbox Entertainment Studio and the cessation of all non-Windows mobile activity by its Nokia division.

Following rumours of cuts to come, Microsoft has confirmed that it plans to cut 18,000 jobs over the next twelve months - the largest round of cuts in the company's history, and a massive 14.4 per cent of its overall headcount. The bulk of these, some 12,500 positions, will come from the company's recently-acquired Nokia mobile arm and represents half the division's staff.

The cuts were announced by chief executive Satya Nadella in an all-staff memo in which he described the ''difficult steps' the company would have to take. 'We are moving now to start reducing the first 13,000 positions, and the vast majority of employees whose jobs will be eliminated will be notified over the next six months,' the memo reads. 'It’s important to note that while we are eliminating roles in some areas, we are adding roles in certain other strategic areas. My promise to you is that we will go through this process in the most thoughtful and transparent way possible. We will offer severance to all employees impacted by these changes, as well as job transition help in many locations, and everyone can expect to be treated with the respect they deserve for their contributions to this company.'

With half the former Nokia staff being shown the door, there's perhaps little surprise in the news that the division's non-Windows products are being cancelled. Microsoft has confirmed that the Android-based Nokia X and the Symbian-based Asha and Series 40 featurephone families will all be discontinued in the coming months. A bigger surprise is the closure of Xbox Entertainment Studios, the company's original-content arm, although it is expected to be permitted to finish the documentary on the excavation of the Atari dump in New Mexico first.

8 Comments

Discuss in the forums Reply
TreeDude 18th July 2014, 15:15 Quote
Very sad. MS took the wrong approach in trying to get better penetration in the mobile phone market. They bought a hardware company when the hardware wasn't the problem. Windows phone 8 is getting better, but the app market is still terrible. They need to provide incentives to app developers. Apps are why we buy smart phones.
maverik-sg1 18th July 2014, 16:19 Quote
It's no surprise that after two companies merge, there is a duplicate of resources and of course this means reductions in staff....I am sure Microsoft was already resource heavy already, adding to the woes.

Nokia does not sell as much as it used to, does not produce as much as it used to, so it's clear that they don't need as many people as they used to either....although Microsoft probably missed a trick by not getting them involved in Xbox.

The top number is 18000 positions will be axed, but EU employees will have a massive payout and I certain MS will see right by those not covered by such redundant friendly laws - of course some of these will be offered new positions so the number of people actually leaving the company will be less than the headline.....still a big number though.

Treedude makes a good point about the apps - viber on windows phone is nothing more than a texting app compared to it's android counterpart......not necessarily looking for more apps (although I sure others will be), but I'd be happy to see app feature sets running on windows phones to be equal or better than those on other platforms...for that to happen MS has to be more open and cost effective.
Corky42 19th July 2014, 10:31 Quote
It would seem Finish politicians aren't to pleased about these job cuts.

How Nokia's Finnish homeland took the news of Microsoft cuts
http://www.zdnet.com/how-nokias-finnish-homeland-took-the-news-of-microsoft-cuts-7000031770/
Quote:
"It can be said that we have been betrayed," Finland's newly-appointed finance minister Antti Rinne told the Finnish business daily Kauppalehti. "At the time of the Nokia deal Microsoft announced it is committed to Finnish expertise. Now it seems this commitment isn't fully met."
faugusztin 19th July 2014, 10:50 Quote
Quote:
Originally Posted by maverik-sg1
The top number is 18000 positions will be axed, but EU employees will have a massive payout and I certain MS will see right by those not covered by such redundant friendly laws - of course some of these will be offered new positions so the number of people actually leaving the company will be less than the headline.....still a big number though.

10% of that cut will come from single factory - Nokia factory at Komarom, Hungary. And all of them are axed, they are just simple factory workers, so they are unlikely to get new positions.

And massive payout ? Forget it. They will get the minimum required by law, and that's it.
Umbra 19th July 2014, 11:02 Quote
Quote:
"It can be said that we have been betrayed," Finland's newly-appointed finance minister Antti Rinne told the Finnish business daily Kauppalehti. "At the time of the Nokia deal Microsoft announced it is committed to Finnish expertise. Now it seems this commitment isn't fully met."

Welcome to the world of big business.
Nexxo 19th July 2014, 11:48 Quote
Quote:
Originally Posted by TreeDude
Very sad. MS took the wrong approach in trying to get better penetration in the mobile phone market. They bought a hardware company when the hardware wasn't the problem. Windows phone 8 is getting better, but the app market is still terrible. They need to provide incentives to app developers. Apps are why we buy smart phones.

^^^ What he said. Windows Phone is innovative, original, and still too flawed in the simple details. Calendar only remembers the last 2 weeks, irrespective of sync settings. IE explorer still has cumbersome navigation (swipe left/right for previous/next page? IE11 Metro has it). Bluetooth is incredibly picky. And its arguably most important app, Xbox Music is unrefined, with no cloud syncing of tracks or playlists. Basic, basic stuff that should have been sorted by now.

Android L meanwhile is copying Metro and overtaking it.
schmidtbag 21st July 2014, 15:05 Quote
Quote:
Originally Posted by TreeDude
Very sad. MS took the wrong approach in trying to get better penetration in the mobile phone market. They bought a hardware company when the hardware wasn't the problem.

Buying a hardware company wasn't a bad idea, though I'm not sure why specifically Nokia was in their best interest. MS wanted a hardware vendor that catered exactly to their needs, much like Google with Motorola. For whatever stupid reason, MS decided their employees are incapable of just designing a phone from scratch themselves. But considering how many Nokia employees are being let go, it really shows how it proves my point and they really didn't need Nokia at all. Google bought Motorola mainly for patent purposes. What does Nokia have that MS couldn't acquire themselves?


Anyway, I just hope the Nokia employees who are being let go aren't Qt developers.
faugusztin 21st July 2014, 17:23 Quote
Quote:
Originally Posted by schmidtbag
Anyway, I just hope the Nokia employees who are being let go aren't Qt developers.

Qt devs already left the building some time ago :
http://www.slashgear.com/nokia-sells-qt-to-digia-ios-android-and-windows-8-ports-promised-09242317/

It is mostly Nokia manufacturing staff. What is happening is that MS is killing Nokia phone manufacturing anywhere else but Vietnam, and moving everything there.
Log in

You are not logged in, please login with your forum account below. If you don't already have an account please register to start contributing.



Discuss in the forums