In a company-wide memo issued this morning, Microsoft CEO Satya Nadella announced the company would be cutting 18,000 jobs – which is 14% of its current workforce.
Nokia employees will be the hardest hit with 12,500 workers laid off. Microsoft just bought the company last year in an effort to improve its smartphone market share.
Nadella emphasized the “start of a journey”, and described the terminations as “difficult steps”.
“The first step to building the right organization for our ambitions is to realign our workforce,” he wrote. “ We will offer severance to all employees impacted by these changes, as well as job transition help in many locations, and everyone can expect to be treated with the respect they deserve for their contributions to this company.”
The Nokia Devices and Services teams will be integrated into a new, more agile and flatter Microsoft, Nadella said.
“The overall result of these changes will be more productive, impactful teams across Microsoft.”
Read the full memo on the Microsoft website