Microsoft has just announced its biggest job cut yet. The company in an official blog post said today that it would lay off over 18,000 employees by next year in order to evolve and improve the organization and its culture.
This was an expected move from the company, as CEO Satya Nadella had hinted at a possible reorganization within the company in a recent memo sent to the employees. And today, Nadella finally came forward to announce the layoff.
Initially, the company would send off 13,000 employees and majority of them will be notified in the next six months. One interesting thing to note here is that more than half of the affected employees are from Nokia. Around 12,500 of the 18,000 who are expected to be cut from the organization are Nokia employees, which is actually not that surprising given that Microsoft had vowed to cut back losses within 18 months of acquisition of the company to their shareholders.
But why is Microsoft laying off so many people?
Well, according to Satya Nadella, the move aims to restructure the company and change some of the processes which brought inefficiency to the organization. Moreover, it will help the company in achieving work simplification and align its goals after the integration of Nokia’s Devices and Services division.
“The first step to building the right organization for our ambitions is to realign our workforce,” said Nadella in the official blog post today. “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.”
Satya Nadella also said that Microsoft will be focusing on Windows ecosystem completely. This means, devices from the Nokia X family running Android will be converted into Lumia devices which will run Windows Phone operating system.
After Satya Nadella took over Microsoft from Steve Ballmer earlier this year, there have been a lot of changes made within the company. All these changes are a part of a big plan where Nadella aims to transform the company into a productivity oriented organization.
In this regard, he no longer calls Microsoft as a devices and services company. In fact, he plans to make Microsoft as a company which reinvents productivity which will help people do and achieve more. His earlier memo encouraged employees to build a new culture within the organization.
In short, Nadella is looking to shape the company for the future and laying off 18,000 employees by next year might just be one of the numerous changes that we’ll see within the company in the coming years.
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