Nokia devices hardest hit

Microsoft announces 18,000 layoffs

By Steve Watts, Jul 17, 2014 6:40am PDT

Confirming earlier reports, Microsoft announced large-scale layoffs today. 

In a letter to employees published on the company site, new CEO Satya Nadella said the company will be reducing its workforce by up to 18,000 jobs over the next year. Its Nokia Devices and Services division will be the hardest hit, accounting for approximately 12,500 of the losses. The company will be reducing the first 13,000 company-wide over the next six months. The Nokia teams will be folded into Microsoft proper for work on Windows devices.

Earlier reports stated that Xbox marketing and engineering divisions could be impacted, but Nadella's letter didn't explicitly mention those. The layoffs are large enough to include an impact, however. 

"The overall result of these changes will be more productive, impactful teams across Microsoft," Nadella wrote. "These changes will affect both the Microsoft workforce and our vendor staff. Each organization is starting at different points and moving at different paces."

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