The decision that was in the pipeline for a long time has finally been taken by Microsoft. Its Chief Executive Officer, Satya Nadella has announced on Thursday that the company is looking to cut down as many as 18,000 jobs, which apparently accounts to 14 percent of the total workforce in the company. The reason for the layoff contributes to the restructuring of the company.
Nadella took over the position of CEO this year itself, in the month of February. He released a memo on Thursday in which he mentioned of the job cuts to his staff. Over the next 12 months, there may be another situation of layoffs. In the 39 year old history of Microsoft, this is the first time when there have been so many job cuts.
Nadella took the responsibility to aware the staff about the process of the layoffs. Here is the statement of the CEO of Microsoft.
“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. It’s important to note that while we are eliminating roles in some areas, we are adding roles in certain other strategic areas. My promise to you is that we will go through this process in the most thoughtful and transparent way possible. We will offer severance to all employees impacted by these changes, as well as job transition help in many locations, and everyone can expect to be treated with the respect they deserve for their contributions to this company,”
Nadella also promised his employees of the question and answer round on Friday where would address all his staff. This would take place in the headquarters of Microsoft situated in Redmond, Washington. The future plans of Microsoft will be however unraveled by Nadella only after the quarterly earnings report of the company is out on 22 July.
Earlier, In a 3,105-words memo written and distributed on last Friday to all its employees, Microsoft’s new CEO mentioned that the company will be focusing more on the cloud, mobile and productivity instead of devices and services. He also pointed that the company will witness big organizational changes as well.
The shares of Microsoft have surprisingly peaked from 1.8 percent to a whopping USD 44.88 on Nasdaq. Since 2000, there has never been such a surge in the stakes on Microsoft.
The analyst at McAdams Wright Ragen, Sid Parakh stated, “Excluding the Nokia cuts, the remaining 5,500 layoffs were not as shocking as it first appeared”.
Although Microsoft is laying off an ample of jobs, but according to the sources, there can be a re-hiring of positions in other sections of the business.