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Microsoft could cut up to 10 percent of its workforce according to reports

Microsoft CEO Satya Nadella last week laid out his grand vision for the future of the tech company. Nadella told employees in a company email that we are in a “mobile-first and cloud-first world” and that Microsoft would strive to achieve greater efficiencies in its workforce and product development to make sure that the customer is put first.
 
At the time, Nadella told employees:
 
Our priorities will be adjusted. New skills will be built. New ideas will be heard. New hires will be made. Processes will be simplified. And if you want to thrive at Microsoft and make a world impact, you and your team must add numerous more changes to this list that you will be enthusiastic about driving…
 
We will increase the fluidity of information and ideas by taking actions to flatten the organization and develop leaner business processes. Culture change means we will do things differently. Often people think that means everyone other than them. In reality, it means all of us taking a new approach and working together to make Microsoft better.
 

According to Bloomberg, Nadella is ready to reduce Microsoft’s workforce and begin the process of integrating Nokia’s Devices and Services division (which was officially acquired earlier this year). Microsoft currently has over 127,000 employees (including the roughly 25,000 that it added from Nokia) and Bloomberg’s sources indicate that more than 5,800 positions will be cut.
 
Gigaom adds a bit more clarity, suggesting that Microsoft could cut up to 10 percent of its workforce.
 
Personnel targeted for termination include those working in areas where Microsoft and Nokia overlap and members of the Xbox global marketing team.

Sources: Bloomberg, Gigaom





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