Microsoft to lay off another 2,100 employees todayBy Himanshu Arora 21 comments
Microsoft is cutting 2,100 jobs today as part of its previously announced plans to reduce its total workforce by 14 percent, according to a ZDnet report. Of those being laid off, 747 are from the Washington state, while the remaining are based at the company's other locations worldwide.
Back in July, Microsoft said it will cut a total of 18,000 jobs, with 12,500 of those cuts coming from employees the software giant inherited when it acquired Nokia's handset and services business last year.
At that time, CEO Nadella said he wanted the company to slim down so as to become more agile, and move faster. He also said reductions are needed in order to properly integrate the Nokia devices and services teams into the company. The job cuts affect both professional and factory workers.
The layoffs are taking place over multiple phases. In the first phase, the company cut a total of 13,000 jobs in July including former Nokia employees, members of the Operating Systems Group, and other groups across the company. With the additional 2,100 cuts today, there are still 2,900 to go.
The move is expected to result in Microsoft incurring pre-tax charges of $1.1 billion to $1.6 billion over the next four quarters, including $750 million to $800 million for severance and related benefit costs, and $350 million to $800 million of asset-related charges. The company expects the layoff process to be substantially complete by year end, and fully completed by June 30, 2015.