14 DAY TRIAL // Microsoft is expected to announce a new major job cut later today, as part of its internal reorganization and struggle to cut costs, a new report claims.
The Redmond-based software giant, which purchased Nokia’s Devices and Services unit last year, fired 18,000 people when the acquisition was complete and is now seeking to lay off more employees, the New York Times is reporting, citing people close to the matter.
Although not confirmed by Microsoft, these layoffs are very likely, especially after the latest internal memos sent by CEO Satya Nadella, who suggested that more “tough changes are needed” to revamp the company from the ground up. These layoffs could also include some product changes, which some said that might refer to dropping units not generating profits, including Windows Phone.
High-profile executives also leaving
A few weeks ago, Microsoft announced the departure of some high-profile executives, including former Nokia boss Stephen Elop, who rejoined the company after the acquisition of Nokia.
What’s more, Redmond has recently confirmed the selling of its online display advertising business to AOL, with 1,200 people to be transferred to the owner in the process.
But Satya Nadella hinted that the company’s internal reorganization wouldn’t stop here and more changes would be made before Microsoft can finally work efficiently on its mobile first, cloud first approach.
“We are in an incredible position to seize new growth this year. We will need to innovate in new areas, execute against our plans, make some tough choices in areas where things are not working and solve hard problems in ways that drive customer value. I really do believe that we can achieve magical things when we come together as one team and focus,” Nadella said.
We’ve reached out to Microsoft for a comment on this new layoff speculation, but we are yet to receive an answer at the time of publishing this article. An official announcement, however, is expected later today.
Update: Microsoft has just announced that it's firing 7,800 people, most of them from the Phone Hardware division.