• Text size      
  • Send this article to a friend
  • Print this article

Microsoft to cut 18,000 jobs as it trims its Nokia business

MICROSOFT has announced it will slash up to 18,000 jobs, or 14 per cent of its workforce, this year as it trims its newly acquired Nokia phone business and tries to transform into a cloud-computing and mobile-friendly software company.

The larger-than-expected cuts are the deepest in the company's 39-year history and come five months into the tenure of Chief Executive Satya Nadella, who outlined plans for a "leaner" business to employees.

He told workers in a memo: "We will simplify the way we work to drive greater accountability, become more agile and move faster. We plan to have fewer layers of management, both top down and sideways, to accelerate the flow of information and decision making."

The size of the cuts were welcomed by Wall Street, which viewed Microsoft as bloated under previous CEO Steve Ballmer, topping 127,000 in headcount after absorbing Nokia earlier this year.

Daniel Ives, an analyst at FBR Capital Markets, said: "This is about double what the Street was expecting.

"Mr Nadella is clearing the decks for the new fiscal year.

"He is cleaning up part of the mess Ballmer left."

Microsoft shares jumped 3 per cent to $45.40 in early trading, reaching their highest since the technology stock boom of 2000. About 12,500 of the layoffs will come from eliminating overlaps with Nokia.

Contextual targeting label: 

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.