Microsoft is expected to cut up to 18,000 jobs in the next year, according to a memo from CEO Satya Nadella.
The changes are mainly due to an overlapping of roles after Microsoft bought Nokia and acquired approximately 32,000 extra employees.
Speaking to employees via the memo, Nadella expressed his views that this was a good thing for Microsoft as they will be able to react and create more quickly than before.
“We plan to have fewer layers of management, both top down and sideways, to accelerate the flow of information and decision making. This includes flattening organizations and increasing the span of control of people managers” said Nadella.
He said that although they are removing jobs, they’re also creating jobs in the process and that all employees affected will be given severance and assistance in finding a new job.
Nadella finished by inviting all Microsoft employees to his Q&A event tomorrow while adding: “Making these decisions to change are difficult, but necessary”.
Nadella is expected to outline the cuts in more detail during an earnings call on July 22nd.
Satya Nadella took over as Microsoft CEO from Steve Ballmer this February and it was September 2013 that Microsoft announced it would purchase Nokia for over €5 billion.
