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Microsoft has confirmed it will axe up to 18,000 jobs globally as part of a restructuring plan following its acquisition of Nokia.
The firm said its plan is ‘to simplify its organisation and align the recently acquired Nokia Devices and Services business with the company’s overall strategy’.
Up to 18,000 positions will be cut over the next year, with around 12,500 of those professional and factory positions.
The cuts are expected to be ‘substantially complete’ by the end of this year, and ‘fully completed’ by June 30th 2015.
It’s the biggest job axing in Microsoft’s history, with the 18,000 representing around one sixth of Microsoft’s 127,000 global workforce. Around 3,500 staff work in the UK.
Microsoft announced plans to acquire Nokia last September and the deal went through on April 25th this year.
The company expects to incur 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 plans were outlined in an email from Microsoft CEO Satya Nadella to Microsoft employees, and an email from Microsoft Executive VP Stephen Elop to Microsoft Devices Group employees.
Microsoft hinted at big changes to Windows during its Partner Conference this week.
