Microsoft has announced a large restructuring effort for the company, one that will result in substantial changes in several sectors of the company and which will see around 18,000 Microsoft staff laid off over the next year. The bulk of these employees will come from Nokia, the smartphone maker recently acquired by the company, which will have some 12,500 staff made redundant.
The reasons for this, as given by new Microsoft CEO Satya Nadella, are that “Our workforce reductions are mainly driven by two outcomes: work simplification as well as Nokia Devices and Services integration synergies and strategic alignment.”
These cuts will also lead to changes in Nokia’s (and Microsoft’s) product lineup, specifically the Nokia X Android-based smartphones that were a recent thing. The Nokia X range will be going away.
“We plan to shift select Nokia X product designs to become Lumia products running Windows. This builds on our success in the affordable smartphone space and aligns with our focus on Windows Universal Apps.”
So there are big changes in store for both Nokia and Microsoft. We’ll keep you posted on where these lead as they are implemented over the next year.
Source: The Verge