Microsoft is reducing the size of its workforce by up to 18,000 jobs, as it looks to become more agile and works to integrate the Nokia Devices and Services teams into the company.
Microsoft chief executive Satya Nadella confirmed the move in an email to employees.
“The first step to building the right organization for our ambitions is to realign our workforce,” Nadella says.
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“With this in mind, we will begin to reduce the size of our overall workforce by up to 18,000 jobs in the next year.”
The workforce reductions are driven by two outcomes “work simplification” and the aforementioned integration of Nokia Devices and Services.
“First, we will simplify the way we work to driver greater accountability, become more agile and move faster,” Nadella says.
“Second, we are working to integrate the Nokia Devices and Services teams into Microsoft. The first party phone portfolio will align to Microsoft’s strategic direction.
“To win in the higher price tiers, we will focus on breakthrough innovation that expresses and enlivens Microsoft’s digital work and digital life experiences.
“In addition, we plan to shift select Nokia X product designs to become Lumia products running windows.”