Microsoft Corporation (MSFT) is cutting 18,000 jobs over the next year
Microsoft Corporation (NASDAQ:MSFT) has confirmed that it is cutting up to 18,000 jobs in the next year as part of a new streamlining plan under newly appointed CEO Satya Nadella. Microsoft said that around 12,500 of the professional and factory positions will be cut as part of the $7.2 billion acquisition of Nokia.
“My promise to you is that we will go through this process in the most thoughtful and transparent way possible,” said Nadella in a memo sent to employees. Nadella said that the vast majority of the employees will be notified within the next 6 months. The employees will earn severance and job transition help. The cuts will be completed by next June.
This is Microsoft’s largest set of layoffs ever. Microsoft currently employs 125,000 people. When Microsoft acquired Nokia, around 25,000 people were added to the company payroll.
Microsoft is expecting to incur pre-tax charges as high as $1.6 billion in the next 4 quarters, including $750-$800 million for severance and related benefit costs along with $350 million to $800 million of asset-related charges.