Back in July 2014, Microsoft announced their largest ever restructuring plan to simplify its organization and align the acquired Nokia Devices and Services business with the company’s overall strategy. As part of it, Microsoft announced their plans to eliminate up to 18,000 positions and the process was completed only early this year. NYT today reported that Microsoft will be announcing another round of major job cuts today (July 8th, Wednesday). At the end of March, Microsoft had more than 118,000 employees globally. Most of the job cuts are expected from the hardware group which Microsoft acquired from Nokia last year. Microsoft’s Lumia device sales are not meeting expectations and the feature phone business is also going down rapidly. This could be the reason for the job cuts focusing on cutting down costs. But there will be job cuts that also affects other divisions at Microsoft as well.
Recently, Microsoft CEO Satya Nadella wrote in an email to their employees that Microsoft will “make some tough choices in areas where things are not working and solve hard problems in ways that drive customer value.” Recently, Microsoft sold their display advertising business to AOL moving hundreds of Microsoft employees. Also, Microsoft is expected to write-down the entire Nokia purchase value of $7.4 billion ahead of their earnings results later this month similar to what they did with aQuantive few years back.