updated 08:24 am EDT, Thu July 17, 2014
Most of the Microsoft layoffs to come from Nokia devices and services
Microsoft has made official previous rumors of massive job cuts. The company is planning on cutting 18,000 jobs in the next year, with the largest cuts coming from the Nokia devices and services division. Microsoft claims that the first 13,000 of the laid-off employees will be notified in the next six months.
In a memo announcing the layoffs, Microsoft CEO Satya Nadella explained that "The first step to building the right organization for our ambitions is to realign our workforce. 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."
The rumors of layoffs have been circulating for some time. An internal email circulated after the Nokia deal pointed out some of the reorganization details of the merger. Ballmer noted in the memo that "Finance, Legal, HR, Communications, DX / Evangelism, Customer Care and Business Development will integrate functionally at Microsoft. Sourcing, customer logistics and supply chain will be part of Stephen's Devices organization. ICM/IT will also integrate functionally for traditional IT roles."
Originally announced in September last year, the $7.2 billion sale saw Microsoft take control of Nokia's Devices & Services business, including its mobile phone production. A 10-year licensing agreement for Nokia's Lumia and Asha brands is also included, as well as the Android-based Nokia X range, with more than 8,500 design patents and 30,000 utility patents and pending patents becoming part of the purchase.