Microsoft announces 18,000 layoffs

Nokia devices hardest hit

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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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  • reply
    July 17, 2014 6:40 AM

    Steve Watts posted a new article, Microsoft announces 18,000 layoffs.

    Nokia devices hardest hit

    • reply
      July 17, 2014 6:42 AM

      Hope xbone division doesn't get boned.

    • reply
      July 17, 2014 6:48 AM

      Holy crap that's a lot of people to fire :-(

    • reply
      July 17, 2014 6:58 AM

      damn. Should I have got a PS4 instead?

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      July 17, 2014 7:01 AM

      Wow they haven't owned Nokia a year. That makes me think it was more of a technology buy than anything to do with the business. Sad.

      I know someone posted yesterday about worrying about their employer being bought. This is the dark side of this coin.

      • reply
        July 17, 2014 7:07 AM

        from the stories of when that former ms exec took over, it sounded like nokia was overstaffed with alot of redundant groups.

        • reply
          July 17, 2014 7:10 AM

          Plus I am sure there is some redundancy with groups Microsoft already had.

      • reply
        July 17, 2014 7:44 AM

        Nokia was already heading in this direction before Microsoft acquiring them. The acquisition was always seen as an expensive way to get into phone hardware. Microsoft was somewhat forced to make the acquisition since Google had Motorola and really there weren't too many Windows Phone hardware vendors to choose from.

      • reply
        July 17, 2014 8:29 AM

        Nokia had a bunch of patents that they wanted.

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        July 17, 2014 10:16 AM

        that's always always always it though, isn't it?
        Has it been about getting the people ever in the last 25 years?

        When they want people they either hire them directly (with a year of double PTO for non compete) or they do some sort of partnership thing, buy stock to get on the board etc.

      • reply
        July 18, 2014 12:56 PM

        That Elop fukr was nothing else but a trojan horse to run the companys stock to the ground, so that M$ could by Nokia and its patents dirt cheap.

    • reply
      July 17, 2014 7:05 AM

      Purchase Nokia / Fire Nokia employees

      sounds solid

    • reply
      July 17, 2014 7:06 AM

      This is only about half of what they acquired from Nokia, so settle down guys.

    • reply
      July 17, 2014 7:06 AM

      Nokia going bye bye

    • reply
      July 17, 2014 7:17 AM

      Although 18,000 will be newly unemployed Uncle Sugar's Community Organizer math wizards at the B.L.S. will categorize them as " leaving the workforce" and The progressive smoke and mirrors will be put on display and CNBC's Steve Liesman will go on the record hailing Obama's latest employment bonanza.

    • reply
      July 17, 2014 7:28 AM

      Man that's terrible. I had a cousin working for them, hope he wasnt axed

    • reply
      July 17, 2014 7:39 AM

      ouch. Hope my Ms buddies are ok

    • reply
      July 17, 2014 7:49 AM

      .css you still got a job bro?

    • reply
      July 17, 2014 8:05 AM

      The press releases target Nokia, but MSFT has a history of slipping in company-wide layoffs at times like this.

      Good luck, M$FT bros.

      • reply
        July 17, 2014 8:26 AM

        1350 in Seattle area today. More to come.

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          July 17, 2014 9:34 AM

          Damn. That is a lot of jobless people in my industry in my area. I feel for them, I was in the same boat last year when Microsoft didn't renew my company's contract.

    • reply
      July 17, 2014 9:01 AM

      Damn, that's nuts. I hope they dont kill Windows Phones.

      • reply
        July 19, 2014 8:47 PM

        This is not the death of Nokia Windows phones.
        Microsoft bought a company that was overstaffed and has many employees in technology and design areas that are duplicated in other areas of their hardware division. This has given them the opportunity to trial a large number of staff then keep the ones that are most productive and innovative and remove the rest of the deadwood.
        This should make Nokia a stronger more focussed company producing better hardware than ever.

    • reply
      July 17, 2014 9:21 AM

      If I had to guess, MS is probably steering in a totally different direction. They are probably abandoning ship on their mobile platform once again.

      Microsoft is a very reactionary company. They are wonderful at receiving all messages about what's wrong with a current product and fixing it completely later down the line or upon the next product release. Currently the problems and complaints are all centered around Windows 8 and the Metro components present in PC's, phones, and their Surface Tablets. Come Windows 9, I wouldn't doubt the App store will either be something completely different or gone entirely. If I had to guess, they probably have something in mind that is better suited for PC's and serviceable on their tablet. This means probably abandoning phones.

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        July 17, 2014 9:43 AM

        Kinect 2.0 doesn't agree with the second part of your post since it's been terrible since it's been out and I can't even imagine how many millions were wasted in R&D on the thing.

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          July 17, 2014 5:48 PM

          Not true. Full abandonment can be a proper and correct step towards improving the bigger picture product. I even think that abandoning windows phone and mobile will improve Windows OS and Windows Surface tablets.

          Regarding abandoning phones, everyone should have seen this coming when MS Office was released on Ios.

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      July 17, 2014 9:27 AM

      Wow. Just wow.

    • reply
      July 17, 2014 9:29 AM

      Good ole corporations.

    • reply
      July 17, 2014 9:41 AM

      I still never understood why MS bought Nokia in the first place

      • reply
        July 17, 2014 9:48 AM

        Especially since they only licensed the Nokia brand for a few years, not forever.

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          July 17, 2014 9:53 AM

          because how else was Elop supposed to earn his gigantic bonus? Had to appear to have done something big, and well now he has.

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            July 17, 2014 2:36 PM

            So fucking shady, I don't care what excuses he comes up with. First switching to Windows Phone then selling to Microsoft, and he just happens to be ex-MS? Come on.

    • reply
      July 17, 2014 10:14 AM

      Corporations are people too- and the fewer people they have, the more people they are!

    • reply
      July 17, 2014 10:22 AM

      Probably going to outsource the Nokia stuff the way they do with all their hardware.

    • reply
      July 17, 2014 10:40 AM

      Definitely did not see this coming at all when Elop came to Nokia.

    • reply
      July 17, 2014 6:26 PM

      That whole Nokia gambit paid off well for them. Looks like the paranoid were right.