Microsoft laying off 18,000 as new CEO Satya Nadella begins changes for tech giant

By Daniel S Levine,

Six months after being named the new CEO of Microsoft, Satya Nadella has announced his first shake-up for the tech giant. In a letter to employees today, he said that the company will eliminate 18,000 jobs.

Nokia will take the brunt of the streamlining. Nadella said that the cuts at the phone maker that Microsoft recently acquired will amount to around 12,500 jobs. At the moment, the first 13,000 jobs are being cut, with the rest being notified through the rest of the year.

According to The New York Times, this is the largest single cut of jobs in Microsoft history. The 18,000 jobs make up 14 percent of its workforce.

The cuts at Nokia will include closing a Hungary factory. Nadella wrote that the goal is to fully integrate the Finnish company into Microsoft. “The first-party phone portfolio will align to Microsoft’s strategic direction. To win in the higher price tiers, we will focus on breakthrough innovation that expresses and enlivens Microsoft’s digital work and digital life experiences,” he wrote.

Nadella was named the new Microsoft CEO in February and Bill Gates stepped down as chairman. Nadella said that a monthly Q&A will take place on Friday and further details on strategy and moving forward will be revealed during the July 22 public earnings call.

image of Bill Gates courtesy of ACE/INFphoto.com



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