Microsoft to cut 18,000 jobs over next year, may soon merge Nokia X into Lumia

Microsoft to cut 18,000 jobs over next year, may soon merge Nokia X into Lumia

Microsoft is all-set to reduce the size of its overall workforce by cutting up to 18,000 jobs over the next year. The company’s CEO Satya Nadella made the announced today through a memo. Nadella considers it as the “first step to building the right organization”. Moreover, the company may soon opt to merge Nokia X series into its Lumia brand.

Of the total figure of 18,000, Nadella said that recently acquired Nokia Devices and Services accounts for 12,500 jobs, comprising both professional and factory workers. This is considered to be the outcome of “synergies and strategic alignment” that the company announced last September.

Nadella details that Microsoft is already 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.

“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.” Nadella said. “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.”

The cut in existing workforce is an outcome of the plan that Microsoft has made to reduce layers of management and to enable greater accountability in the organisational structure. Nadella explains, “[W]e 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. In addition, our business processes and support models will be more lean and efficient with greater trust between teams.”

Though the changes in the organisational structure are designed to enhance productivity, these alterations will also help the software giant to integrate Nokia’s resources. “The first-party phone portfolio will align to Microsoft’s strategic direction. To win in the higher price tiers, we will focus on breakthrough innovation that expresses and enlivens Microsoft’s digital work and digital life experiences. In addition, 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,” Nadella added.

This statement hints that Microsoft would soon merge the Nokia X series into Windows Phone-running Lumia devices. Some initial reports have already been suggested the same by saying that the company may announce “Nokia by Microsoft” branding in the coming future and could introduce Android running Lumia devices.

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