CNET by Roger Cheng July 17, 2014
Microsoft CEO Satya Nadella on Thursday laid out plans to cut as many as 18,000 jobs in the next year.
The software titan had been widely expected to announce the cuts today, but the magnitude of the layoffs was surprisingly large. A vast majority of the cuts — 12,500 — will come from professional and factory positions from the recently acquired Nokia devices and services division.
Microsoft said the company is working on reducing the first 13,000 positions, and many of the employees will be notified in the next six months.
CNET by Don Reisinger July 17, 2014 6:31 AM PDT
Microsoft exec Stephen Elop is making it abundantly clear: Microsoft has no intention of staying in the Android business.
In a memo emailed to employees on Thursday, Elop said Microsoft’s devices business will concentrate “on the areas where we can add the most value” and noted that Nokia X smartphones, which run on heavily modified versions of Android, will migrate to Windows Phone.
“We plan to deliver additional lower-cost Lumia devices by shifting select future Nokia X designs and products to Windows Phone devices,” Elop, executive vice president of Microsoft Devices & Services, wrote in his memo to employees. “We expect to make this shift immediately while continuing to sell and support existing Nokia X products.”
Nokia’s X line of devices was the company’s attempt to attract more budget-conscious customers to its platform. This was also a major story in the ongoing Microsoft-Nokia saga, since it ran on Android — Microsoft’s chief competitor in the mobile market. It was initially believed that Microsoft would stick with Android on Nokia X devices, but according to Elop, the cheaper end of the smartphone market is a key area of growth …Read More