Microsoft Planning Massive Job Cuts After Nokia Devices Intergration | TechTree.com

Microsoft Planning Massive Job Cuts After Nokia Devices Intergration

The upcoming round of lay offs could exceed the 5,800 positions Microsoft eliminated back in 2009.

 

Microsoft is reportedly planning the largest round of layoffs in its history as the company gears up to integrate Nokia's handset business with itself. According to a Bloomberg report the current round of job cuts could exceed the 5,800 positions Microsoft eliminated back in 2009.

The company is expected to announce the move as early as this week, effecting positions in the Nokia unit who's function has become redundant after the takeover. The lay-off will encompass the marketing and engineering departments at Nokia, as well as other positions that already exist within Microsoft.

The company gained roughly 25,000 employees after completion of the $7.2 billion acquisition of Nokia's devices arm back in April. The Bloomberg report is in line with analyst Rick Sherlund's prediction that Microsoft would reduce its employee headcount by 5 to 10 percent.

[Also read: Microsoft Reaches A Milestone; Sells 12 Million Nokia Lumia 520s]

He wrote that Microsoft could look to eliminate $1 billion in cost through a 25 percent reduction in employment under its Nokia division. It has long been expected that the Redmond company would downsize Nokia after its purchase, but the scale of the rumoured lay off is still surprising.

Microsoft will work towards curbing Nokia's sliding profits, while also using the devices to promote its Windows Phone operating system. The move is in keeping with Microsoft's aim to transform itself into a device and services company, and its rather unfortunate that a few thousand jobs stand in the way of achieving that goal.


TAGS: Microsoft, Nokia, Windows Phone

 
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