Microsoft is embarking on the deepest cuts to its workforce in its 39 year history, axing 18,000 jobs over the next year, as it absorbs its newly acquired Nokia phone business and takes out layers of management.
The new boss of the US company is cutting one in seven of the tech giant’s 127,000 global workforce as it attempts to integrate the Finnish business it acquired in April for $7.2bn.
Satya Nadella, the firm’s chief executive for just five months, first hinted at job cuts last week when he outlined plans for a leaner business. That led to speculation about sweeping job cuts, but expectations underestimated the 18,000 job losses announced yesterday, which propelled the tech giant’s shares to their highest level since the dotcom boom in 2000, gaining 1.5% to $44.84.
The cuts will mostly come from Nokia, which added 25% more staff to the Microsoftworkforce. Until now, the largest round ofredundancies in Microsoft history was in 2009, when it cut 5,800 employees.
“My promise to you is that we will go through this process in the most thoughtful and transparent way possible,” Nadella said in an open letter on Thursday.