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Microsoft set to lay off large amounts of staff in upcoming organizational changes

Satya Nadella

Microsoft is planning to implement a large round of cuts, the largest of its kind in five years for the company, according to a report over on Bloomberg. The goal is to slim down Nokia's handset division, which was purchased earlier this year. The affected areas are said to include positions at Nokia's old division that overlap with Microsoft's own business, as well as some marketing and engineering posts.

Microsoft had 127,104 employees as of June 5, after absorbing 30,000 with its acquisition of Nokia's mobile device division. It is reported roles including the Xbox marketing teams may also be affected.

It was only last week when Microsoft CEO Satya Nadella issued a mission statement, hinting at possible reshuffling and organizational changes. Nadella noted he would be implementing said changes later this month. "Over the course of July, the Senior Leadership Team and I will share more on the engineering and organization changes we believe are needed." Some of those changes will be revealed on July 22 when Microsoft announces its latest quarterly financial report.

Source: Bloomberg

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Reader comments

Microsoft set to lay off large amounts of staff in upcoming organizational changes

233 Comments

Perhaps consider without having to push updates through multiple teams for certification and verification, testing and even current 8.1 knowledge. Cut the slow ones, things move quicker. I doubt everyone at Nokia is perfect, so I doubt that more simply equals better in this situation. I have to agree with less is more instead. More productive that is.

compartmentalising the OS means core components of the OS are updated frequently without having to push firmware and OS refreshes. A practice implemented on WP first, and used to bypass carriers' delay-tactics. Of course, you know this already, right?

Although I feel bad for anyone losing their jobs, they should start with whomever decided to get rid of Zune and go for Xbox music. That was nothing short of sabotage against WP.

++925 said crap would make a lot more sense if Microsoft's asinine DRM didn't have a download quota.

Even just rebranding Zune to Xbox music... like whatever... just not what we have now. That said, it's not all bad - just inferior.

Come on... Are you not concerned with the people who are gonna lose their jobs? Can you just be patient when it comes to updates?

Concern? Sure. But I acknowledge reality, otherwise we'd still pay people to make buggy whips and pay phones.

"windows phone, please be patient and not buy iOS and Android".

yeah, doesn't have a good ring to it. you're fired!

all companies eventually get big and inefficient. you go into any company and you will find people who have been paid for years for doing very little or have redundant duties with other people. of course, if you ask that person he will tell you he is the most valuable and hardest working person there. Every few years, you have to get rid of people that aren't really contributing. hopefully they get rid of the right people and not use seniority or other non-performance related method to chose who they let go. i suggest they start with marketing. let the nokia people take over the marketing department. 

HP has 317.000 employees. IBM has 431.000. MIcrosoft is a tiny sh*t compared to those behemoth mammoths.
 

IBM is doing huge things, they're just more of a software services company now, much less consumer facing in terms of their output

IBM is also laying off gobs of people, but few really notice, because that's one thing IBM is been really good at. Their huge campus near me bleeds a few hundred every few months. They've been doing this for as long as I can remember.

Also they do a lot of outsourcing like capgemini and other consulting companies, lots of those employees are low level computer tecnicians and or support tecnicians that work over the phone, no biggie, its part of their services portfolio.

Still I think restructuring comes first, layoffs second. Because you might need an extra hand in places where the company is doing well. Employees feel a lot more respect for a company if they have the oportunity to be reallocated rather then dismissed. Also they might not end up with the likes of google and apple and share their trade secrets.

Let them go to google and apple. MSFT needs to slow these companies down and sending the failing class is a good strategy.

Of course it makes sense to deduplicate roles and remove cost. It's not like Nokia were financially sustainable. That said, I hope they keep the Nokia staff. Infinitely better at PR, advertising, design and engineering!

Anyone part of the Nokia acquisition who didn't see this coming as the deal was closing must have had a psychological block from reality. Acquisitions rarely turn out to be good for acquired employees.

The number of HP employees come from Wikipedia, and its from 2013. Wonder how many unnecessary middle-management was lurking there before, OMG, those all need to be terminated..

There are 21 million government employees in the United States. Wrap your head around that one. What the hell do they all do????

Aren't doctors, firefighters, etc part of government employees? Also police, mayors, city hall employees, street cleaners, etc..

Law enforcement = 800,000
Fire fighters = 275,000
Physicians at the VA = 14,000
Mayors = 20,000

So, we've accounted for 1.1 million (6%). What about the rest?

Έλα πες την αλήθεια. Έχεις τραβήξει και τρολλάρεις αβέρτα-κουβέρτα!!! Good job! :P

But Nutella is supposed to be good! (I've never tried it, but heard people say they love it... which would cover my experience with iPhone and Android too, then...)

He's exactly what Microsoft needs. Ballmer was good and energetic but Nadella has the engineering background that anyone leading a company like this needs. Since he's become CEO Microsoft's stock value had been steadily rising. Running a business always involved restructuring and like the other guy said, most acquisitions involve shedding some of the old employees

God damn it, don't start with racist crap, all I see as it is is: "what about India"? Lets not add fuel to the fire.

You will also see this: Only few different Lumia models sold at one time. Maybe 3 (?), the "520", the "920" and the phablet. Also few tablets as there is now. The phones arent selling and as Natella stated there will be a change in strategy. Crossplatform services are a better bet, until WP starts to sell. Although we will see less intrest to develop apps to WP when this happens. Maybe thats why lately see the news aboutAndroid apps possibly coming to WP?

Nope, not going to happen. If they did that they'd be going head to head with Google Android devices and that's not what they're trying to do. Offering full Play Store access would totally defeat their purpose of promoting Microsoft services. Want full Play Store access and Microsoft apps and services too? You'll have to spend a little more and buy a HTC One or Galaxy S5 instead of a bargain basement Nokia X.

Fewer Lumia models in active production at one time? I'm all for it, if it means less carrier exclusivity and more OEMs picking up the WP ball. Why would an OEM want to produce a WP device if there is already a Lumia available at every price point?

One company merged into another company.. who would expect NO lay offs? This person must have no common sense or understanding of business administration

How did people not see this happening? Microsoft bought Nokia for their tech, not for their staff. Hopefully they all shuffle over to a competitor and continue working in phones.

True, but I imagine we can safely assume that any devices Nokia were working on will now be released under Microsoft, I imagine the devices coming out later this year were in development before the merger. Which it's not the specific nifty gritty of the tech behind everything, I was using a broader use of the word.

Yep, this is inevitable with every merger. Too many redundant positions, especially in HR and other administrative jobs.

Which one?
Nokias marketing division worked fine, they should keep their jobs. The WP marketing people on the other hand... 4% marketshare after 4 years... Guess who should get fired?

Note to Microsoft. You bought Nokia because they built excellent phones, something your own people had no idea about. Keep the Nokia Engineers and trim your in house deadwood that built up over the years of turf wars and fiefdom creation. The fat is in Redmond, not Nokia.

Well said Mad Sci2

Hit the nail on the head perfectly.

Just imagine what the no talent designers at MS are gonna be dishing out to us in the next couple of years.

America design has failed miserably in the last 20 years. You gave us the beautiful sexy  Tomcat, Eagle and Hornet now all you can put out is the ugly F22 and even worse JSF.

Meanwhile the Russian jets just get hotter and hotter..

"Ugly F22" "Meanwhile the Russian jets get hotter and hotter"

Yea because Russian jets crash and burn from crappy design flaws. The F22 is a practical jet that looks very stealth and is very stealth for the very reason of being a stealth fighter jet.

And lets not forget the group who decided to not keep and build on Zune and decided to start from scratch with Xbox music instead. They must be a special bunch.

Keep the people who went out of their way to fill the app gap with apps of their own :cough, Nokia,hack:

I hope the next (first) WP by Microsoft will have a new name, or get rid of the stupid numbering system. Some people who aren't techies and don't know much about WP think higher # means higher end. That isn't the case, as the Lumia 820 was better than the Lumia 900, and the Lumia 525 is better than the 710.

I've liked all my MS hardware from mice and keyboards to my Pro 3. If this speeds up firmware updates on phones as fast as their computers, I'm all for it. My Icon is almost six months old and the firmware to enable the rest of its features still hasn't been released.

MS are gonna regret that if true.

 

We as consumers are going to suffer 1st then we will pass the pain onto MS.

It's only logical that this would happen. Of course there would be a lot of overlapping, this would happen with any boss, be it Ballmer or even Gates. This had to happen.

I think Nokia's marketing division and engineering division were better than Microsoft's. Maybe they should lay off the ones at Microsoft instead.

I totally agree with you! It would be sad if the people that designed the N9/Lumia 800 hardware would have to go. And MS can learn a lot from Nokia's marketing team (see Zune...).

Why is this wrong? With the Acquisition of Nokia they got a lot of people doing work (marketing for example) that there own staff all ready does.

It's obvious that the need to reorganize the corporate structure and departments so everyone one is the job they should do and no one does a job someone else is already doing ;-)

With corporate mergers like this one it's no more then logical to transform both separate companies into 1 good functioning company.

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No one said its wrong. We just need something to complain about, this works. Were frustrated waiting for update.

Maybe because Microsoft doesn't do a good job with things like I dunno marketing consumer goods and is not outstanding at hardware engineering. Yeah there might be overlap but I'm not sure it should be the Nokia people going.

Microsoft fucking up Nokia!!after the purchase,the devices are getting really stupid and dull 630 930,worst wps ever ,now they cut down the great Nokia staff
And say bye bye nokia

I second that :)

Tareq, if the Lumia ICON is an awesome phone, how come Lumia 930 is not? Where it's the same phone.

ICON - US Market (Verizon)

930 - International market (and slightly is better in specs than ICON)

As Greece2014 said: Slap your face...... one more time :)

Look at when the Icon was released and when the 930 is. If this is the first phone to showcase windows 8.1 they should've release something on par with other flagship phone out there instead of repackaging an old phone.

Well, if you look at that way, ICON was released as a Verizon Exclusive, so, that's a targeted market, I don't think all USA users are on Verizon. 930 on the other hand is an international release, so it need more time for production cuz will hit much larger market. So, I guess marketing people or people who make sales startegies at MS know more of that than us end users. Whatever we say, don't think it will change something in MS general strategy. :)

Does Microsoft have a choice not to? Nokia just had too many people to run. I do think they're mostly going to the other side of Nokia

Those phones were designed by Nokia, so if they are dull you should blame Nokia not Microsoft.

I'm 25 and i do understand business, the fact that Microsoft keeps failing up and Nokia is the only reason people are buying Windows phone's,I say get rid of Microsoft's engineering team and keep nokia's,BUT get rid of nokia's marketing team and keep ms

Wow..Have you seen the CV/Resume of the people your looking to hire or fire?  Do you know thier SWOT analysis or strategy?  Do you know thier pipeline and resource allocations, budgets etc

 

Nokia is NOT why anyone purchased Windonws Phone (maybe a few), the majority purchased because of the OS, just happened to be on great hardware by Nokia.  MS Engineering team are outstanding, the testing team are crap IMO but thats most likely outsourced to TCS in India, however, the pressure for product release comes from the top, they have raodmaps and targets to hit and management need to say NO, this product is not ready instead of releasing devices with glitches.

I kept telling you folks there it seemed like there was some internal strife between the two cause MS just liquidated almost anything Nokia asap, its almost like someone's pissed and wants to twist the knife. Remember, natela is working with"senior staff" one or more may not have been happy haggling over the expanse of an ocean to make a phone.

Nowhere it I'd stating that it's the Nokia staff that would be reduced. I think Satya Nadella is smart enough to look for the best people for the job, and not just to fire old Nokia employees.

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This was supposed to happen but at the same time we the consumers may suffer. MS is already doing bad with updates.

Something that needs to be done after a acquisition to align proper growth rate. We now have the best of both the companies develop team's and it's resources that will only benefit the OS. I don't think it will hurt production or effect the updates of lumias because many of the job's were repetitive.

Only problem is, that's a lot of people to determine who stays and who goes. In a company like that, your pretty much a number.

Sad that people will lose their job but it was to be expected....i just hope they keep the right people not only keep the older ones at the company to save money

Wall Street capitalism at work. Bigger company swallows smaller company; smaller company employees best get their resumes in order. 

Microsoft is out of there. It wont last long. That's where people from windows phone are going to head back to apple and android wait and see.

This isn't a surprise, it's normal when two giant companies merge. My concern is what happens after? It takes great skills and a manager with substantial experience to successfully integrate two corporations like Microsoft and Nokia together without disrupting market and service processes. I never subscribed to Nadella as his profile is more of techies without resounding management feats in his career but we claimed that we needed someone who understands the techie language and now he is just too slow. No proper plan or process for rolling out WP8.1 (Nokia used to give us at least a website to check update schedule based on region, carrier and country). I just wonder if Ballmer was really slow and less innovative, Nadella talks too much with nothing or little to show for it. Just my opinion. I am beginning to defeat my own argument that a high end Lumia is better than an iPhone.

I think that too, the microsoft's management is in chaos right now when the competitive market is flourishing. Long awaited disappointed peoples from super late updates and sudden bad news like this one may force them to move back to Samsung and apple where the provision of services are up-to-date and satisfying.

first of all, Ballmer was responsible for the mess Nadella is cleaning up. Remember it was Ballmer who thought OEMs would pay for windows phone when android was nacent in 2011. It was Ballmer who drove away talent to google and amazon among others due to his "stack ranking". I could go on and on about why Ballmer was a leader for a different time. But the truth is that Nadella can't turn the ship around that fast. If you understand the complexities as you claim you do, then you must at least see this. Any CEO, doesn't matter who, has to be given the chance. If you think that anybody could spin MSFT on a dime after a year, then you're really not qualified to judge Nadella.

I'd say give him more responsibility. Clearly MSFT doesn't have a clue about mobile. If it did, it wouldn't be the eternal 3% player. Elop does among its flaws have a virtue: he ran a big mobiel company that was doomed due to decisions that pre-dated him. He knows what OEMs want from MSFT. MSFT is clueless as they have proven and need all the help they can get.

Gutted for those who will lose their jobs. It won't bea good time for them. Puts into perspective my wanting the next software update; behind every update there are people with feelings, families and dreams.

I have a dream. The dream MSFT will change and be the agile company it once was. If jos must be lost to this, the benefit will offset the losses. Imagine all the jobs that will be created when/if MSFT platforms gain mobile traction. That will offset the few layoffs needed to make it happen. plus this people aren't some assembly line working in a developing country. They are highly educated pros who will find something else to do at a place more suited to their skills.

At least their not getting the pink slip right before Christmas. That's the way we normally do things around here.

This should not come as a surprise to anyone. I have worked for three Fortune 100 companies, and the bank I work for now was acquired by one of the five largest banks in the world two years ago. You don't pick up an acquisition of this size without laying off some people.

This may end up being a good thing in the long term. The same happened when Steve Jobs returned to Apple and look at their position ever since the invention of the iPod.

WOW..just wow!!!!

Some of the coments ive read are beyond belief.  MS are doing EXACTLY what ANY and EVERY single company in the world would be doing if they purchased a 30,000 strong company and bought them into the fold.  This is called integration, its part and parcel of the strategy.  Do you really expect them to KEEP ALL 30,000 staff? If yes then please do not ever start a business, better for you to be an employee for others that understand the basics.

The best staff will be retained, duplicate roles gotton rid of and THEN the process of streamlining workflow can continue.  Micrsoft need another 6+ months to fully benefit from this takeover, Nokia was not built in a day, they cannot be integrated in a day either.  As for the doom and gloomers who point to the recently launched devices, they are NOTHING to do with Microsoft from hardware point of view as these were already in the pipeline at Nokia.  Patience, wait and see what MS bring out in the next several months, then and ONLY THEN can any of us truly see/judje what they are doing.  All the signs are amazing and this is only one of many steps taken to give us what we want.

Yeah, exactly this.

People thinking with their hearts instead of thier heads.  This is no shocker to anyone with any business knowledge.  Life isn't fair.  This happens frequently.  Get over it.

How about fire 1 guy (Nadella) and vote for Elop? Hahaha! Or get Gates back! Ai!!

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Adding 30'000 employees created lot of duplicates in jobs and functions so it is only reasonable to let some ppl go...

Madmass seems to be an ass. Bloody racist :3 better look around you and you will get an answe about the race you are talking about.

@Rahul,

 its okay its internet, people can post what they think not whats right. The comment are not screened before it get posted like it happens on other website . its gets posted right away. Pros and cons.

We have the freedom lets not misuse it..thats what differentiates us from the herd.

I can't believe that I am reading all these short-sighted comments. Proves that end consumer is indeed super dumb. This was bound to happen, when company is struggling or merging, lay offs happen. It happened with Nokia, With HP (when they baught Palm), Motorola and it has also happened with Apple. Its called management.
That being said, I hope any deserving individual won't lose his/her job into this ordeal. And may they find better work environment, if they had been laid-off.

He should not layoff the Nokian's, they are a talented lot he should look elsewhere, in Redmond, maybe the surface team, any hardware they design is plagued by hardware issues, battery problems and so on.... From these happenings I am sure MS is not going to release another 41MP beast, it is a low margin device, they may want to choose low margin high volume devices like 520, 630 and so on. Even if they do release a high end device availability will be limited :(

It's bizarre how suddenly everyone here has become a business expert and seems to know the intimate workings of both Microsoft and the Nokia division and who needs to get cut. When any company aquires part of another there is going to be overlap. Howling about who is better and worthy of a job without knowing exactly what each of these people do is pretty pedantic.

Ppl loose their jobs everyday should cry for everyone? Who cares is right on! Windows will be in our hands for a long time!

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