And there goes the Microsoft downhill. Will be?
The reduction represents about 14% of the workforce of the company
Microsoft reported on Thursday that it will dismiss 18 thousand employees, the largest cut of vacancies in the bulk of the history of the company. The goal is to wipe away the company, after the acquisition of the division of mobile phones of Nokia in September 2013. The last resignation en masse announced by the manufacturer of the software had been in 2009, when 5.8 thousand have been waived.
The reduction represents about 14% of the workforce of Microsoft. The round of layoffs is expected to be completed on 30 June 2015 and will cost to the company of Redmond between$ 1.1 billion and$ 1.6 billion, according to statement from the company.
The announcement was made by means of a long memorandum, of more than 1,100 words, signed by the executive vice president of products, Stephen Elop. In the letter, he justifies the cuts outlining the goals of productivity and the differences between the Microsoft and Nokia — while the former is focused on software, the Finnish was known for the production of hardware.
“It is particularly important to recognize that the role of phones within Microsoft is different than it was in Nokia. While the business phone was an end in itself in Nokia, Microsoft all our devices are made to load the best of our digital work and experience of digital life, agragando value to the strategy,” the document said.
With the layoffs, the company says that “wraps” the operations of the industry, as a way of drying the structure. According to the document, the plan is to divide the production of phones between Hanoi, Vietnam, Beijing and Dongguan in China. The company also claims that the operations of preparation and repair will be transferred to Manaus and Reynosa respectively, leaving, in this way, Komaron, Hungary.
The decision marks the management of the new chief executive officer Satya Nadella, who replaced Steve Ballmer in February of this year, with the mission to restructure the company to compete with the competition, primarily focusing on the market of mobile devices — the evidence that Microsoft would buy the Nokia began to emerge, exactly, with the strong integration of the Windows Phone operating system and line of smartphones Nokia Lumia.
The acquisition of the phone manufacturer had added 30 thousand employees to the Microsoft team, taking the total number of employees of the company or the 127.100 in April. It is not yet clear how many of the dismissed were legacies of the Finnish company. On Wednesday, when the announcement was made initially by the anonymous sources, the information was that the cuts would affect also the team Xbox.
— Microsoft precious to be a technology giant more lean in the coming years to achieve the perfect balance between growth and profitability with their business ventures in the cloud and mobile devices — said to Bloomberg, Daniel Ives, analyst of FBR Capital Markets.
Last week, Satya Nadella has made his first pronouncement official, who spoke on the guidelines of the company, reinforcing the strategy announced yet in the management of Ballmer, to strengthen the mobile market.