Microsoft Announces 18,000 Job Cuts, The Largest In Company History

The company looks to restructure after the acquisition of Nokia.

Microsoft Announces 18,000 Job Cuts, The Largest In Company History
[Image: Flickr user Janitors]

Earlier this week Bloomberg reported that Microsoft was restructuring, and would soon announce the largest round of layoffs in company history. Today, in an announcement by new CEO Satya Nadella, the electronics company gave us some actual figures, and the numbers are grim: 18,000 Microsoft jobs will be cut by next year.


Most of those will be redundancies that have resulted from the acquisition of Finnish handset maker Nokia in fall 2013.

“Of that total, our work toward synergies and strategic alignment on Nokia Devices and Services is expected to account for about 12,500 jobs, comprising both professional and factory workers,” writes Nadella. He continues:

We are moving now to start reducing the first 13,000 positions, and the vast majority of employees whose jobs will be eliminated will be notified over the next six months. It’s important to note that while we are eliminating roles in some areas, we are adding roles in certain other strategic areas. My promise to you is that we will go through this process in the most thoughtful and transparent way possible.

Employees will be offered severance packages, and a few will be offered transitional help to other jobs. The cuts are the largest in company history, eclipsing the 5,800 positions severed in 2009. Further specifics will be revealed on July 22 during Microsoft’s public earnings call.

[Via Microsoft]

About the author

Chris is a staff writer at Fast Company, where he covers business and tech. He has also written for The Week, TIME, Men's Journal, The Atlantic, and more.