The aftermath of Nokia’s acquisition and subsequent efficiency savings is the rationale for the axe’s descent.
The aftermath of Nokia’s acquisition and subsequent efficiency savings is the rationale for the axe’s descent.
Change is afoot at Microsoft this month as stated in an open communication to employees from CEO Satya Nadella. Touching on the successful takeover and integration of telecoms giant Nokia last April, he outlines expected layoffs across the whole of the company amounting to 14% of Microsoft’s total workforce.
In the short term 12,500 of these will be at Nokia Devices and Services in both strategic and factory teams thanks to ‘synergies and strategic alignment’ with the rest of the organisation. It’s hoped that during the six months over which the majority of redundancies will take place (some 13,000 of the total) new positions will emerge that will be filled by vulnerable staff.
The letter goes on to explain that a more streamlined management and development structure will aid in innovation and better implement Windows on Nokia smartphone designs. The letter does not mention Microsoft’s XBox division, which was also expected to be hit hard.
Further specific details of the move should be revealed at the public earnings call on July 22nd.
Source: Microsoft.com
