has officially announced today that it will make 18,000 layoffs through the course of this year. The process will begin over the next six months with the first 13,000 positions.
CEO Satya Nadella made the announcement in an open email titled “Starting to Evolve Our Organization and Culture.” Big changes for the tech company had been previously mentioned, and it now appears that “work simplification,” as Nadella referred to it, will be the first step.
Around 12,500 of the first round of layoffs will be a result of a new focus on aligning business plans with Nokia Devices and Services, which Microsoft acquired April 25. Nadella noted that employees laid off would receive severance and work transition help.
On July 22, Nadella will make more specific points of where Microsoft will be taking its business during a public earnings call, and the CEO will also host a Q&A tomorrow for employees to ask any questions on the layoffs.
While it sounds as though the initial layoffs will mainly come from Nokia, Microsoft’s new focus on making the organization smaller and more streamlined will no doubt affect some of the Microsoft staff as well.