Microsoft Chief Executive Officer Satya Nadella commenced one of the largest job cuts in technology industry on Thursday, aiming to restructure the aging personal computer giant into an agile competitor to Apple and Google and shake-up a tendency at the firm that’s accustomed to cushioning its current software products.
Microsoft announced on Thursday that it will cut up to 18,000 jobs, about 14% of its staff, over the next one year as it almost cuts to half the size of its latest Nokia phone business acquisition and strives to stamp authority in the cloud-computing and mobile-friendly application market.
The cuts, which surpass expectations, are the deepest the software powerhouse has had to make in its 39 years of existence, and are being implemented five months after Nadella took office.
Nadella did not reveal much about where the job cuts will be implemented, beyond the Nokia resizing. The CEO did not reveal what areas will receive more funding either, Reuters reported.
A person familiar with the matter said the 175-strong Xbox Entertainment Studios unit will be a major casualty of the firm’s latest shake-up plan.
Nadella said he will field questions from company staff at a town hall gathering at Redmond, Washington-based Microsoft head office on Friday, during which, the CEO will spell out his intentions publicly after the company announces its three-month earnings report on July 22.
But European Employment Commissioner Laszlo Andor revealed on Thursday he had sought to Meet Microsoft officials to avail more information on how the company plans to implement the 18,000 jobs cut and what strategy it intends to deploy to manage the social impact, according to the Chicago Tribune.
“I have asked to meet with Microsoft representatives as soon as possible in order to get more information on the planned redundancies and the measures to alleviate the social consequences,” stated Andor.
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