Thursday, July 17, 2014

Microsoft lays off 18,000 employees

Big news in the tech space this morning, as Microsoft has announced it will be laying off 18,000 employees - 12,500 from the recently acquired Nokia devices division - as it grapples with a rapidly changing technology market that no longer blindly buys new versions of Windows and Office with every upgrade cycle. It is the biggest layoff in the company's history - in 2009 it terminated 5,900 employees amid the global economic meltdown.

Recently named CEO Satya Nadella made the announcement this morning (text, from, and in doing so confirmed growing rumors that something was up. Nadella sent a 3,000+ word email to employees last week outlining his roadmap. Analysts have said the company is seeking some $600 million in savings to justify its $7.2 billion U.S. purchase of Nokia's devices division. Whatever the number ultimately is, it's cold comfort it you're one of the 18,000 meeting with HR today.

More to come...

Related links:
Microsoft announces massive round of layoffs, including 12,500 Nokia employees (BGR)
Microsoft announces biggest-ever job cuts, 18,000 in the next year (The Verge)
Microsoft Cuts 18,000 Jobs as Nadella Streamlines for Cloud Era (Bloomberg)
- Microsoft to eliminate up to 18,000 jobs over next year (CTV/AP)

No comments: