Redmond isn’t done with its job cutting program, expert believes

Jul 28, 2014 20:59 GMT  ·  By

Microsoft CEO Satya Nadella has recently announced that approximately 18,000 employees would be fired following the acquisition of Nokia, but it turns out that the company might actually announce more layoffs soon.

Industry analyst Tomi Ahonen, who is also a former Nokia employee, told Light Reading in a statement that Nadella is very likely to announce more job cuts in the coming future, and explained that all Microsoft Devices staff “should be mentally prepared” for such an announcement.

Former Nokia boss and currently head of Microsoft Devices unit Stephen Elop could also be affected by the upcoming job cuts, Ahonen said, while also pointing out that Microsoft’s smartphone business isn’t working quite as expected. Elop’s leaving could be a way to deal with this issue, he said.

“The prospects for Microsoft hardware, and especially low-cost phones, are not promising, so this unit is very much in jeopardy. Elop has mismanaged the [former] Nokia handset business so badly that those remaining with Microsoft handsets will be better off when Elop is removed from being in charge. Expect that within one year,” the analyst explained.

According to sources, all Microsoft divisions are affected by the recently announced job cuts, including the Windows unit, which is set to lose a number of testers as part of this layoff campaign.