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Microsoft Slashes 18000 Jobs

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A memo from CEO Satya Nadella announces the biggest number of job cuts in 40 years of Microsoft history-- 18000, the majority of which (12500) being half of the employees who joined Microsoft following the Nokia acquisition.

Microsoft cuts Described by Natella as a "first step to building the right organisation for our ambitions is to realign our workforce," the move reduces the Microsoft workforce, one clocking at 127104 employees, by 14%.

The second-highest Microsoft job cut was 5800, which took place during the recession back in 2009.

"Our workforce reductions are mainly driven by two outcomes: work simplification as well as Nokia Devices and Services integration synergies and strategic alignment," Nadella continues.

As well as bringing bad news to a fair amount of people-- and reams of corporate jargon of the "agility", "accountability" and "simplification" variety-- the memo also reveals plans of leaner, more efficient management, as well as what Microsoft is planning to do with Nokia Devices and Services.

Soon enough the division will be folded into the bigger Microsoft behemoth, and "select" Nokia X handsets will become Windows-powered Lumia products. In other words Microsoft will no longer dabble in Android devices, as its more affordable phones will also run on Windows.

A followup memo from former Nokia CEO turned Microsoft VP Stephen Elop reveals the company will be focusing on "driving Lumia volume," with phone engineering efforts concentrated in Salo and Tampere, Finland.

The job cuts announcement follows on a previous memo from the CEO describing Microsoft's new worldview-- one of the Windows maker as "the productivity and platform company for the mobile-first and cloud-first world."

More of Nadella's ambitions for a post-Steve Ballmer Microsoft will be announced during the company's earnings call on 22 July.

Go Starting to Evolve Our Organisation and Culture

Go Stephen Elop's Email to Employees

Go Bold Ambition and Our Core