Microsoft set for swingeing job cuts – report – Mobile World Live

Microsoft set for swingeing job cuts – report

15 JUL 2014

Microsoft will announce its biggest round of job cuts in five years as soon as this week, as it looks to “slim down and integrate” Nokia’s devices unit.

According to Bloomberg, the axe will fall primarily in former Nokia units, and in areas of Microsoft that overlap with them – such as marketing and engineering.

The report, which cited “people who asked not to be identified because the plans aren’t public”, said that this could be the biggest restructuring in Microsoft’s history, topping the 5,800 cuts made in 2009.

Last week, Satya Nadella, who was appointed CEO of Microsoft in February of this year, issued a memo trumpeting the company’s “mobile-first, cloud-first” strategy, although this was very much centred on platforms, apps and services, rather than devices.

Indeed, Nokia was only mentioned once, in a section which also talked about Microsoft’s own – hardly world-beating – Surface tablet line.

Nadella’s memo also hinted that a broad restructure is on the cards. He said that he is looking to “flatten the organisation and develop leaner business processes”, adding that Microsoft’s senior executive team has been asked to “evaluate opportunities to advance their innovation processes and simplify their operations and how they work.”

Microsoft has more than 125,000 staff, having added 30,000 from the acquisition of the bulk of Nokia’s already slimmed-down Devices & Services unit.

While Bloomberg said the plan could be announced “as soon as this week”, Microsoft is also set to announce its quarterly results next Tuesday, which may prove a sensible time for it to update on its new direction.

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Steve Costello

Steve works across all of Mobile World Live’s channels and played a lead role in the launch and ongoing success of our apps and devices services. He has been a journalist...More

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