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.
TOP TECH CUTS 2014
|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|
|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|
|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 http://www.microsoft.com/en-us/news/press/2014/jul14/07-17announcement1.aspx. To read Elop’s email, seehttp://www.microsoft.com/en-us/news/press/2014/jul14/07-17announcement2.aspx.
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.