Microsoft Announces 18,000 Job Cuts

July 17th, 2014
in econ_news, syndication

from Challenger Gray and Christmas

Today, Microsoft announced 18,000 job cuts, mostly due to the acquisition of segments from Nokia. The previous largest cut in the company's history occurred in 2009 when it announced 5,800 layoffs. This cut falls in line with other large tech cuts, including 25,000 announced by HP in 2012.

Follow up:


5/24/2014 Hewlett-Packard Co. Palo Alto CA restructuring Computer 16,000
1/20/2014 Intel Corp. Santa Clara CA cost-cutting Computer 5,350
2/27/2014 Maximus Inc. (Affordable Care Act call center) Boise ID closing Telecommunication 1,600
5/19/2014 LivingSocial Washington DC demand downturn Computer 1,500
1/23/2014 Texas Instruments Inc. Dallas TX restructuring Electronics 1,100
3/1/2014 Verizon Wireless Irvine Irvine CA restructuring Telecommunication 1,092
5/30/2014 Dell Inc. (India plant) Round Rock TX cost-cutting Computer 1,000
1/29/2014 EMC Corp. Boston MA restructuring Computer 1,000
4/9/2014 Intel (Costa Rica plant) San Jose CA restructuring Computer 1,000
2/27/2014 Sony Electronics San Diego CA demand downturn Electronics 1,000


Editor's Note: The following statement was on the Microsoft website:

REDMOND, Wash. — July 17, 2014 — Microsoft Corp. today announced a restructuring plan to simplify its organization and align the recently acquired Nokia Devices and Services business with the company’s overall strategy.

These steps will result in the elimination of up to 18,000 positions over the next year. Of the total, about 12,500 professional and factory positions will be eliminated through synergies and strategic alignment of the Nokia Devices and Services business acquired by Microsoft on April 25.

The actions associated with the plan are expected to be substantially complete by Dec. 31, 2014, and fully completed by June 30, 2015.

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 Vice President Stephen Elop to Microsoft Devices Group employees. To read Nadella’s email, see To read Elop’s email, see

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services, devices and solutions that help people and businesses realize their full potential.

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