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Microsoft to cut a further 2,850 as it continues to distance itself from Nokia

Microsoft To Layoff 18,000

Microsoft has announced it will reduce its headcount by a further 2,850 by the end of 2017, as it continues to distance itself from the less-than-successful Nokia acquisition.

The announcement, which was made through a 10-K filing, follows up 1,850 positions being removed in May. After flirting with the world of mobile, the Microsoft team announced in July last year it would be removing 7,400 positions relating to the phone hardware business, as well as taking a $7.6 billion write-down related to its $7.2 billion Nokia acquisition, in additional to a restructuring charge, which it believed would be between $750 million to $850 million.

“In addition to the elimination of 1,850 positions that were announced in May 2016, approximately 2,850 roles globally will be reduced during the year as an extension of the earlier plan, and these actions are expected to be completed by the end of fiscal year 2017,” the filing said.

The move to integrate Nokia into the Microsoft business was a move to bring the giant once again to the front of the technology industry. While Microsoft was one of the world’s most successful companies through the 80’s and 90’s, the 00’s saw the company move into the shadows. This is not to say the company was going under, but it certainly wasn’t a prominent as it was in a previous life. The Nokia acquisition had the potential to bring the company back to its starring role, but it wasn’t to be as competitors dominated the space.

Although the smartphone effort to redefine itself was not successful, the team has certainly found joy in the world of cloud computing, with its Intelligent Cloud business unit, most notably its poster-boy Azure, playing a central role in future fortunes. In cementing its place as a top-three players in the cloud infrastructure market, acquiring the largest professional social network and enhancing the Cortana offering, the team has seemingly once again found its place at the forefront of technology development.


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