Microsoft earlier this year made the news with a large number of layoffs, as it let go of 12,500 employees. On Thursday, Microsoft announced the latest job cuts, which will leave 2,100 people without jobs, and the latest result of the Nokia purchase earlier this year.
The job layoffs from Microsoft were announced on the Microsoft website on Thursday, and 2,100 people were the final tally. 747 of them will be coming from the state of Washington where Microsoft sits, with the others being from other areas of the world.
Cuts From All Over
Whereas the previous job cuts came from the Nokia division, as a result of the Nokia purchase, these latest job cuts will come from a number of areas within Microsoft. The company did not elaborate any further to the press regarding the layoffs, but many saw this coming as a result of the future of the company.
Microsoft is expected to cut people from the Operating Systems Group in this latest move, and also reduce the number of contingent workers, from whom the work isn’t permanent within the company. This 20 percent reduction of contingent workes is a lot, but is very common among large tech companies.
From 125,000 Employees To Less
In July 2014, Microsoft was a large company, as it reported an estimate 125,000 employees worldwide. When the company purchased Nokia’s services, it gained another 25,000 worldwide. The company is expected to take a $1.6 billion charge for severence packages with these layoffs, and will face the effects of these layoffs down the line.
The company is expected to reduce another 2,900 jobs by July of 2015, and this should be the last of the layoffs for Microsoft. When Satya Nadella joined the company, he announced that these job cuts would be coming, and he definitely kept his word with the layoffs announced. By reducing the number of workers around the world, the company can focus on growing its mobile and cloud first world, and make sure that any lackluster performers are removed from the company. It’s the unfortunate side of business for Microsoft, but a reality for most.
Layoffs are never any fun, and today was that day at Microsoft. It’s sad when people lost their jobs, but it needs to be done.