Microsoft is cutting around 18,000 total jobs, or 14 percent of its total workforce, over the next 12 months. CEO Satya Nadella said the cuts are needed to streamline efficiency after its recent purchase of phone manufacturer Nokia.
Nadella did say those workers being let go will receive a severance package and assistance in finding a new job, although he did not delve into what either of those will mean specifically.
The CEO, in a letter to employees that has been published by the tech company, said its "work toward synergies and strategic alignment on Nokia Devices and Services is expected to account for about 12,500 jobs, comprising both professional and factory workers. We are moving now to start reducing the first 13,000 positions, and the vast majority of employees whose jobs will be eliminated will be notified over the next six months."
He added there will be company sessions where employees can ask questions and answers on the future of their position, as well as other jobs being created to offset the losses in jobs.
The move, Nadella argued, will help reduce management, with the hopes of streamlining communication as the company positions itself in the continuing battle for tech supremacy. He also argued the job cuts would help to increase information dissemination and the decision-making process in the company.
At the same time as Nadella announced the layoffs, he also took the time to push forward the new Nokia offerings the company has in store. Microsoft will "focus on breakthrough innovation that expresses and enlivens Microsoft's digital work and digital life experiences" to win in the higher price tiers, he said.
