Microsoft’s CEO Satya Nadella announced new restructuring plans on Thursday that will ultimately lead to 18,000 job cuts. A large bulk of those jobs includes members of Nokia’s Devices and Services team, which Microsoft acquired earlier this year. 12,500 employees in that segment, including factory workers and professionals, will be affected.
“We are moving now to start reducing the first 13,000 positions, and the vast majority of employees whose jobs will be eliminated will be notified over the next six months,” Nadella said. “It’s important to note that while we are eliminating roles in some areas, we are adding roles in certain other strategic areas. My promise to you is that we will go through this process in the most thoughtful and transparent way possible. We will offer severance to all employees impacted by these changes, as well as job transition help in many locations, and everyone can expect to be treated with the respect they deserve for their contributions to this company.”
Nadella said the cuts are in an effort to make Microsoft more “agile.” He also explained that Microsoft is going to refocus its Nokia X strategy and that it will switch “select” future Nokia X devices from Android to Lumia Windows Phone products.