Microsoft announced yesterday they will be playing off 18,000 emploees. The news came from a memo to employees called "Starting to Evolve Our Organization and Culture." New CEO Satya Nadella laid out the plans for the companies future.
The majority of the layoffs, 12,500 jobs, will come from the Nokia Devices and Services business. Microsoft acquired this business from Nokia in 2013 for $7.2 billion. The layoffs will happen in the next year, with the majority in the next sice months.
"It's important to note that while we are eliminating roles in some areas, we are adding roles in certain other strategic areas," said Nadella. "My promise to you is that we will go through this process in the most thoughtful and transparent way possible."
The majority of the other 5,500 job cuts appear to come from the management level. Nadella plans to have fewer layers of managers, which will help speed up the flow of information, as well as decision making.
For Xbox fans, it appears the Xbox division has not been affected in a major way by the layoffs.
"With a set of changes already implemented earlier this year in these teams, this means there will be limited change for the Surface, Xbox hardware, PPI/meetings or next generation teams," said Microsoft Devices Group head Stephen Elop.