Satya Nadella, Gave A Statement on Jobs Cutting.
To achieve long-term success, short-term suffering is unavoidable. This is one of the underlying messages from today’s speech by Microsoft CEO Satya Nadella, in which he outlines his proposal to restructure Microsoft’s engineering as part of a more extensive set of 18,000 job layoffs at the firm.
The company’s strategic direction as a productivity and platform company was summarized in an email I sent you last week. The destination has not yet a goal, but rather the journey’s beginning. Building the infrastructure and culture necessary to realize our purposes are the more challenging part of the process. To further explain our next steps, I will elaborate on them today. I’ll go into further depth about where we’re putting our money into innovation on our public earnings call on July 22.
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We must realign our staff as the first step in constructing the proper structure to achieve our goals. In light of this, we plan to eliminate up to 18,000 positions over the next year. It is estimated that roughly 12,500 jobs, including both office and production staff, will be directly attributable to our efforts to achieve synergies and strategic alignment on Nokia Devices and Services. The first 13,000 layoffs have already begun, and most affected workers will be informed over the next six months. Microsoft CEO Satya Nadella says It’s worth noting that while we’re getting rid of some positions, we’re adding others in other vital areas. I assure you that we will go about this with the utmost deliberation and openness. All affected Microsoft employees will get a severance package, assistance finding new employment in numerous areas, and the utmost appreciation for their years of service to the organization.
A member of the Senior Leadership Team will provide additional details about tomorrow’s operations later today. Work simplification, synergies, and strategic alignment resulting from merging Nokia Devices and Services are the primary factors influencing our reduced employee size.
To start, we’ll streamline our processes to encourage more accountability, boost flexibility, and speed up our response times. As we update our engineering procedures, we will also adjust our expectations for the various fields that make up our field. To further expedite the dissemination of data and the making of decisions, we intend to have fewer tiers of management, both vertically and laterally. Organizational changes such as giving managers more authority over more people are examples of this trend. And because of the increased level of trust throughout the various groups, our business operations and support models will be slimmer and more effective. These alterations will lead to more effective teams across Microsoft as a whole. These alterations will impact those working for ‘Microsoft CEO Satya Nadella’ and those who supply us with goods and services. Each group has a unique beginning point and is progressing at its rate.
Nokia Devices and Services teams
Second, Microsoft is trying to include the Nokia Devices and Services teams. As promised when we announced the acquisition last September, we will achieve synergies. Microsoft CEO Satya Nadella’s strategic goals will be reflected in its first-party mobile phone portfolio. Microsoft plans to dominate the premium market by introducing game-changing innovations that bring the company’s digital workplace and consumer products to life. Furthermore, we want to repurpose several Nokia X product designs as Windows-powered Lumia devices. Our continued success in low-cost smartphones is a natural outgrowth of our dedication to Windows Universal Apps.
Changing your habits isn’t easy, but it is vital. Please join me tomorrow for my monthly Q&A session. Please come if you can, and feel free to ask anything on your mind. We appreciate your patience while modernizing our company and its ethos.