Microsoft to fire 14% of its staff

Microsoft to fire 14% of its staff

Earlier this week, reports emerged indicating Microsoft may be about to go through their largest job cut in history, as an estimated 5,800 jobs were on the line. The reality of the cut, however, is much worse.

Microsoft will actually be firing 18,000 employees. That’s exactly 14.16 percent of its global staff of 127,104. This is three times larger than their previous largest job cut, and very far out of the norm. Microsoft usually cuts several hundred people at once, not several thousand.

In a memo to employees sent this morning, CEO Satya Nadella said most of the cuts will come from the Nokia division. Roughly 12,500 of those employees will be shed, which is just under half of the 30,000 Nokia employees who joined Microsoft when the company was acquired last September.

The layoffs are set to start for the first 13,000 positions immediately, and the full 18,000 will be terminated in the next six months. This will cost Microsoft $1.1 billion to $1.6 billion in severance and benefits.

This massive layoff comes after Nadella sent a massive memo (3,187 words to be exact) the company made a point to share publicly. In the memo, Nadella makes comments about re-prioritizing the responsibilities of employees, adding he will use “the month of July to have a dialogue about this bold ambition and our core focus.” It seems he will be re-prioritizing them out of their offices.

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