Microsoft Announces Steps to Simplify Organizations and Align Devices Strategy

[Cristian_25H]

Microsoft Corp. today announced a restructuring plan to simplify its operations and align the recently acquired Nokia Devices and Services business with the company's overall strategy.

These steps will result in the elimination of up to 18,000 positions over the next year. Of the total, about 12,500 professional and factory positions will be eliminated through synergies and strategic alignment of the Nokia Devices and Services business acquired by Microsoft on April 25. The actions associated with the plan are expected to be substantially complete by Dec. 31, 2014, and fully completed by June 30, 2015.



The company expects to incur pre-tax charges of $1.1 billion to $1.6 billion over the next four quarters, including $750 million to $800 million for severance and related benefit costs, and $350 million to $800 million of asset-related charges.

The plans were outlined in an email from Microsoft CEO Satya Nadella to Microsoft employees, and an email from Microsoft Executive Vice President Stephen Elop to Microsoft Devices Group employees. To read Nadella's email, see this page. To read Elop's email, see this page.

View at TechPowerUp Main Site

 

[RCoon]

Satya's email was very gracious, and honestly one of the best "we're sacking most of you to save money" letters I've seen, ever. So props for that.

But the long winded "Align Devices" PR splurge is just an intelligence insulting way of saying "we're axing a shitload of employees because we don't think we need them and want to save monies"

 

[64K]

It's not just MS. It's sad to see so many losing their jobs.

http://money.msn.com/business-news/article.aspx?feed=OBR&date=20140717&id=17783345

"Microsoft is not alone among the pioneers of the personal computer revolution now slimming down to adapt to the Web-focused world.

PC-maker Hewlett-Packard Co is in the midst of a radical three-to-five-year plan that will lop up to 50,000 from its staff of 250,000.

International Business Machines Corp is undergoing a "workforce rebalancing," which analysts say could mean 13,000, or about 3 percent of its staff, being laid off or transferred to new owners as units are sold.

Chipmaker Intel Corp and network equipment maker Cisco Systems Inc both said in the past year they were cutting about 5 percent of their staffs."

 

[Jorge]

It's always sad to see good people lose their job due to poor management and that is precisely what the problem has been at Microsucks, HP, IBM and Intel. They got too big and bloated while losing sight of their customers and the marketplace. Now their employees pay for incompetent management. It's always the workers who pay for the mismanagement.

 

[Hilux SSRG]

It's horrible for anyone who is being let go, but when MS acquired Nokia sometime ago it should have quite apparent to MS employees. MS should have never bought Nokia and bring in it's management staff, most notably S. Flop. How that guy still has a executive/management job is beyond me.

 

[jagd]

Edit : confused hewlett -Packard with Packard Bell ,it was packard bell sold to acer. HP is another company i dont mind if it goes bankrupt btw.

Nothing surprise for microcrap , they are so hopeless, they wasted every oppurtunity they had, been put terrible products , they ignored customers , tried force their chooses .They even could not produce a competitive phone OS more than a decade ,they backstabbed and handicapped their partners with MS branded hardware www.zdnet.com/blog/btl/microsoft-poisons-its-partners/80536 .They were a marketing team mostly , but marketing team without good product means nothing.

It's not just MS. It's sad to see so many losing their jobs.

PC-maker Hewlett-Packard Co is in the midst of a radical three-to-five-year plan that will lop up to 50,000 from its staff of 250,000.

 

[TheMailMan78]

Man there is a lot of crap and MASSIVE misinformation being thrown around this thread. Nevermind the fact they are making damn near record profits and with this cut of the fat will post even more next Q.

http://www.theverge.com/2014/1/23/5338162/microsoft-q2-2014-financial-earnings

No we all got to follow the "M$, Microcrap" or whatever kiddie phrase/ideology the lemming web must dictate.

 

[Deadlyraver]

I wish the economic conditions today did not motivate such compromises. Thanks to big companies like Microsoft, they play as a leading example over how job security really is like in the world of technology. I can only imagine the future now.

 

[remixedcat]

Intel and Cisco??? o____O

 

[Steevo]

Man there is a lot of crap and MASSIVE misinformation being thrown around this thread. Nevermind the fact they are making damn near record profits and with this cut of the fat will post even more next Q.

http://www.theverge.com/2014/1/23/5338162/microsoft-q2-2014-financial-earnings

No we all got to follow the "M$, Microcrap" or whatever kiddie phrase/ideology the lemming web must dictate.

This occasional turnover is normal for large companies, its like having a old car, pretty soon what you get from a aging department is worth less than their contribution, and in our society people much like machines are disposable as long as the higher ups get to keep buying their toys and snorting lines of coke off high end hookers bodies.


If these people didn't know they were going to be axed they weren't paying attention, and if they were mindless sheep putting in their time for the paycheck then too bad, they should have pushed harder, moved along when the moving was good, continued their education and or continued to improve themselves.