Microsoft to Ax Up to 18K Jobs

That's up to 14% of its workforce
By Kate Seamons,  Newser Staff
Posted Jul 17, 2014 7:55 AM CDT
Microsoft to Ax Up to 18K Jobs
Microsoft on Thursday, July 17, 2014 announced it will lay off up to 18,000 workers over the next year.   (AP Photo/Eric Risberg, File)

Microsoft has announced what will be the heftiest round of job cuts in its 39-year history: As many as 18,000 positions, or roughly 14% of its workforce, will go. The move follows the company's Nokia acquisition, which inflated its ranks to 127,104 workers. Re/code reports on the timeline: Microsoft is "moving now" on 13,000 cuts; the cuts should be fully completed by June 30, 2015, according to Bloomberg. About 12,500 positions will be deleted from the Nokia Devices and Services unit, roughly halving it.

Bloomberg notes that Microsoft vowed to achieve $600 million in annual costs savings in the year and a half following the close of the deal, which happened in April. It anticipates charges of $1.1 billion to $1.6 billion over the next four quarters, which includes $750 million to $800 million for severance and related benefit costs, notes the AP. Re/code has CEO Satya Nadella's full memo to staff. (More Microsoft stories.)

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