Microsoft Expects To Incur Pre-tax Charges Of About $1.6 Billion Related To Layoffs, Mainly For Severance & Related Benefit Costs

As you all know, Microsoft today announced their largest ever restructuring plan to simplify its organization and align the recently acquired Nokia Devices and Services business with the company’s overall strategy. As a result of it, Microsoft is planning to eliminate up to 18,000 positions over the next year. Of the total, about 12,500 will be professional and factory positions from the Nokia Devices and Services business acquired by Microsoft on April 25.

Microsoft is expecting these plans to be substantially complete by Dec. 31, 2014, and fully completed by June 30, 2015. Another important thing for investors is that, Microsoft expects to incur pre-tax charges of $1.1 billion to $1.6 billion over the next four quarters, including $750 million to $800 million for severance and related benefit costs, and $350 million to $800 million of asset-related charges.

Read more about it here. Read about Stephen Elop’s mail to Microsoft employees here.