July 8, 2015

Microsoft Announced a Massive Reduction of 7800 Employees

Microsoft will cut 7,800 jobs and reduce the carrying amount of the division for the production of mobile phones in the $ 7.6 billion. This is due to the revaluation of the mobile business Nokia, acquired in 2014.

Number of employees cut down  will start over the next few months. Reductions will concern mainly business unit for the production of mobile phones, said in a  letter to the general director of the corporation Satya Nadella.

The head of the company announced a "fundamental restructuring" telephone business and the intention to write off the losses of $ 7.6 billion related to assets acquired after the acquisition Nokia Devices and Services.

Of the 2300 employees of downsized layoffs will be in Finland. According to the Finnish TV channel, the overall state of Microsoft in the country is 3,500 employees.

According to the data of The Wall Street Journal, the deal to acquire Nokia Devices and Services was estimated at $9.4 billion. Then the CEO Steve Ballmer wanted to compete with Apple, the Finnish company combining technology and software Windows, which so far is struggling to go up against the OS big fishes like iOS and Android. But that might work or worth a shot after the launch of Windows 10 for Mobile versions and having Cortana in it.

Reducing the cost of Microsoft's mobile division means that the corporation concluded that the revenue from smartphones on the Windows platform does not justify the cost of acquisition of the mobile business, writes WSJ.

Following the acquisition of Nokia's mobile business in Microsoft moved about 30 thousand. Corporation in July last year has announced a reduction of 18 thousand employees, representing 14% of total staff. According to WSJ, the reduction is subjected to about 12,500 people at a cost Microsoft $1.3 billion spent on the reorganization.

The total number of employees of the corporation at the end of March 2015 calculated to 118 thousand according to The New York Times. This means that their will be lots of job requirements after this whole decision.

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