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Microsoft to eliminate 18,000 positions; CEO Nadela informs employees via email

At 5:00am Pacific Time (5:30 pm IST) Microsoft posted an email from CEO Satya Nadella to ‘All Employees’ on its News Center. The email, titled “Starting to Evolve Our Organization and Culture”, informs employees that the overall workforce would be reduced by up to 18,000 jobs next year. He adds that work toward synergies and strategic alignment on Nokia Devices and Services is expected to account for about 12,500 jobs, comprising both professional and factory workers. He goes on to say that 13,000 positions would be eliminated in the initial phase, and that most of these employees would be notified over the next six months. In September 2013 Microsoft had announced that it will acquire all of Nokia’s Devices & Services business, license Nokia’s patents, and license and use Nokia’s mapping services. Later in April 2014 Microsoft informed that it would close the acquisition on April 25 and that Nokia’s Devices and Services business would be renamed Microsoft Mobile. In the email, Nadella emphasises that the entire process would be conducted in the most thoughtful and transparent manner. All impacted employees will receive severance packages and will receive assistance in job transition. He also adds that while positions in certain areas will be eliminated, there will be additions in other strategic areas. Nadella mentions that this workforce reduction is primarily driven by two outcomes - work simplification and Nokia Devices and Services integration synergies and strategic alignment. Microsoft’s Senior Leadership Team members are expected to share more details later today.…

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