Microsoft has been a company of improvements and job cuts during 2014, as the company spent billions to acquire Nokia, but also cut thousands of jobs to integrate them into its business. On Wednesday, Microsoft cut its last 3,000 jobs in the company, as its part of eliminating 18,000 jobs during the year, and making a trimmer Microsoft.
The move to cut 3,000 jobs came as a shocker to some, but was writing on the wall to some Microsoft insiders. The company was expected to cut the last group at some point during the year, and by doing it at the end of October, it can make the November month clean, and gear up towards future growth inside the company.
The Job Cuts
In the job cuts, Microsoft cut 638 jobs in the Seattle area, which brings up the total count of layoffs in the area to 2,7000. Microsoft is by far one of the largest employers in the area, and at the end of September, had an estimated 42,000 employees in the area, according to various reports.
In a statement on Wednesday, Microsoft stated that this was another step to the 18,000 job reductions it announced in July, and is the last of the layoff group. It will cover a number of business units and countries, and cover a wide number of areas within Microsoft and the group, which should span across the globe.
Microsoft Is Still A Big Company
As of last June, Microsoft’s global headcount was 127,000, and Satya Nadella stated that he wanted the company to have fewer layers of management, both top and sideways, to accelerate the flow of information and decision making. It’s very apparent, that the company is doing this, and has done it with its large job cuts during 2014.
A lot of the job cuts came with the integration and purchase of Nokia, and for some that is sad, and for some its positive. Microsoft is giving those severance packages and assistance, but those will see the Nokia purchase as the accelerator to these layoffs, with the addition of a new CEO as well. By making a thinner Microsoft, Satya Nadella can help Microsoft survive in the future.
It’s sad when layoffs occur, but it happens in business. Microsoft has a ton of employees, and still has a bunch remaining.