Microsoft announced plans to eliminate 1850 jobs back in May, primarily from its smartphone business unit. And now it seems the company has more layoffs planned; according to a US Securities and Exchange Commission filing, an extra 2850 people will be let go.
Microsoft’s 10-K filing states: "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 first round of cuts from earlier this year will see 1350 jobs go at Microsoft Mobile in Finland headquarters and another 500 globally. The Finnish job losses affect those working at the former Nokia world headquarters.
Back in 2013 and under the leadership of then-CEO Steve Ballmer, Microsoft announced it would purchase Nokia’s mobile division for approximately $7.2 billion. A move that hasn’t turned out to be a good one for the Redmond firm.
After failing to make a dent in the competitive smartphone market with its Lumia brand, Microsoft revealed in July 2015 that it would be shedding 7400 employees and taking a $7.6 billion write-down related to the Nokia Acquisition.
The latest set of layoffs is a continuation of last year’s plan, and will again mainly affect the company’s smartphone business. Some of the jobs cuts will come from Microsoft's sales organization, which recently underwent a reorganization following the departure of COO Kevin Turner. About 900 of these workers have already been notified.
As pointed out by Recode, this latest move means Microsoft has now “essentially shed nearly all of the Nokia mobile phone business.” As it is cutting 12,500 jobs in under two years, is the company now finished with the layoffs?