Thursday, Sep 18, 2014Thursday, Sep 18, 2014
Business
 

Microsoft announces 18,000 job cuts globally in reorganisation

Published on Jul 17, 2014 8:43 PM
 

NEW YORK (AFP) - Microsoft said on Thursday it would slash 18,000 jobs from its global workforce over the next year, the majority from the integration of the Nokia unit acquired this year.

A Microsoft statement said the move is part of "a restructuring plan to simplify its operations and align the recently acquired Nokia Devices and Services business with the company's overall strategy". The cuts represent about 14 per cent of Microsoft's global payroll of some 127,000. The company will take a charge of between US$1.1 billion (S$1.36 billion) and US$1.6 billion for costs related to the layoffs.

Chief executive Satya Nadella said in an e-mail to employees that the "difficult but necessary" cuts are part of a plan to bring a new strategic direction to the US tech giant. "The first step to building the right organization for our ambitions is to realign our workforce.

"It's important to note that while we are eliminating roles in some areas, we are adding roles in certain other strategic areas."

The Microsoft logo seen before the start of a media event in San Francisco, California on March 27, 2014. Microsoft said on Thursday, July 17, 2014, it would slash 18,000 jobs from its global workforce over the next year, the majority from the integration of the Nokia unit acquired this year. -- PHOTO: AFP
 
If you are not a subscriber, you can get instant, unlimited access here

Videos