- Start
- Jul 16, 201490% CONFIDENCEfrom the source
- End
- Jul 17, 201490% CONFIDENCEfrom the source
Microsoft to cut 18,000 jobs in the next year
- On Thursday 17 July 2014 Microsoft announced it will lay off up to 18,000 workers over the next year, "by far the largest number of employees that will be cut by the company in its history", in a letter sent to employees that morning and also released publicly[1][2][3]
- Al Jazeera puts the scale at 14 percent of the workforce and the biggest cut in Microsoft's 39-year history, about twice analysts' estimates, against the roughly 5,800 jobs cut in 2009 at the height of the worldwide economic recession[1][2]
- CEO Satya Nadella confirmed 12,500 of the losses come from the acquisition of Nokia's Devices and Services division in April; the number of Nokia staff taken on is given as 25,000 by the pin's source and TechCrunch, but as 28,000 (with 12,500 "nearly half") by the later Al Jazeera report[1][2][3]
- Nadella: "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", adding that roles are being added in certain other strategic areas and that Microsoft will "have fewer layers of management, both top down and sideways, to accelerate the flow of information and decision making"; affected employees get severance and job transition help in many locations[1][3]
- Microsoft said in a separate press release that it expects pre-tax charges of between $1.1 billion and $1.6 billion over the next year (described by Al Jazeera as the next four quarters), including $750 million to $800 million for severance and related benefits and $350 million to $800 million of asset-related charges; it remained on track for the $600m annual savings target within 18 months of the deal closing[1][2]
- On products, the Nokia device teams roll into Microsoft, ending the Nokia X Android-based designs announced in February in favour of low-cost Lumia hardware running Windows Phone, and Microsoft will largely abandon the low-price Nokia Asha phones; Xbox Entertainment Studios, the two-year-old Santa Monica original video unit, is being closed[2][3]
- Locations named in the later report: about 1,350 Seattle-area workers around Redmond, 1,800 in Hungary, nearly 370 in San Diego and 1,100 in Finland, leaving headcount at about 109,000, still around 10,000 more than before the Nokia acquisition[2]
- More information was expected on July 22, when Microsoft announces its latest quarterly financial results; Nadella was to host an internal Q&A the day after the announcement[1][3]
References 390% CONFIDENCE
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- [1]90%wpcentral.com/microsoft-cut-18000-jobs-next-yearwpcentral.com· Posted Jun 15, 2017· Starts Jul 16, 2014 ✓· Ends Jul 17, 2014 ✓· 97% of score
Happened as dated, per wpcentral.com: "Your membership journey starts here. Keep exploring and earning more as a member. La…"
- [2]84%Microsoft to cut 18,000 jobs worldwide | Al Jazeeraaljazeera.com· Published Jul 18, 2014· 2% of score
Al Jazeera's July 18, 2014 report independently confirms the 18,000-job cut - 14% of Microsoft's workforce, the largest in its history - aligning with the pin's stored date.
- [3]88%Microsoft To Cut Workforce By 18,000 This Year, 'Moving Now' To Cut First 13,000 | TechCrunchtechcrunch.com· Published Jul 17, 2014· 2% of score
TechCrunch's July 17, 2014 report confirms Microsoft's plan to cut 18,000 jobs within a year, with 13,000 cuts moving first, matching the pin's stored mid-July 2014 date.
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