Microsoft (NASDAQ:MSFT) will be cutting 18,000 jobs – which represents approximately 14% of its entire workforce – over the next year following its acquisition of Nokia’s phone business, the tech giant announced July 17.
A company representative told Business in Vancouver that it is not disclosing how this would affect Microsoft Canada’s Canadian operations or its expansion plans in Vancouver; the company had planned to double its Vancouver workforce with a new training and development centre at Pacific Centre.
Most of these jobs will be eliminated in the next six months, and Microsoft is “moving now” to eliminate the first 13,000 positions, company CEO Satya Nadella said in a July 17 email to all employees.
About 12,500 jobs will be professional and factory workers directly related to Nokia.
Executive vice-president Stephen Elop said, in an email also dated July 17, that the company is going to be focused on marketing the Windows Phone going forward.
“It is particularly important to recognize that the role of phones within Microsoft is different than it was within Nokia,” Elop wrote. “Whereas the hardware business of phones within Nokia was an end unto itself, within Microsoft all our devices are intended to embody the finest of Microsoft’s digital work and digital life experiences, while accruing value to Microsoft’s overall strategy.
“Our device strategy must reflect Microsoft’s strategy and must be accomplished within an appropriate financial envelope. Therefore, we plan to make some changes.”
As of press time, Microsoft shares were up 1.27%, trading at $44.64.
- With files from Nelson Bennett
