The US software giant Microsoft has announced plans to slash 18,000 jobs from its global workforce in 2015, the largest cuts in the company’s 39-year history.
In a statement on Thursday, the company described the shakeup as part of its strategy to streamline business under new CEO Satya Nadella.
Layoffs represent about 14 percent of the company’s workforce and will be completed by next June.
Nadella, who replaced Steve Ballmer in February, promised the layoff process to be fair.
“My promise to you is that we will go through this process in the most thoughtful and transparent way possible,” he said in a memo to the company’s 125,000 employees worldwide.
Most of the layoffs are expected to be from the integration of the Nokia unit that was acquired earlier this year.
Microsoft says the move is part of a restructuring plan to simplify its operations and align Nokia with its overall strategy.
“Under the Ballmer era, there were many layers of management and a plethora of expensive initiatives being funded that has thus hurt the strategic and financial position the company is in, especially in light of digesting the Nokia acquisition,” said Daniel Ives, an analyst with FBR Capital Markets & Co., adding, “Nadella is using today as an opportunity to make sure that Microsoft is ready and well positioned to embark on its next chapter of growth around mobile and cloud.”
Back in 2009, the company underwent a restructuring plan, and cut 5,800 jobs, which was about 5 percent of its workforce at the time.
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