(Ping! Zine Web Tech Magazine) – Microsoft announced earlier today that they will cut 14% of its workforce over the next year as its new CEO strives to remake the company.
According to a press release from the tech giant, a total of 18,000 employees will be getting laid off by June 30, 2015, with 12,500 jobs associated with the Nokia Devices and Services team that Microsoft acquired for $7 billion in April.
Satya Nadella notes in his email to all employees that the company has already started removing the first 13,000 positions, and those affected will be notified over the next six months.
Employees affected by the cuts will be offered severance, and in some cases help in relocating to find a new job.
“The company expects to incur pre-tax charges of $1.1 billion to $1.6 billion over the next four quarters, including $750 million to $800 million for severance and related benefit costs, and $350 million to $800 million of asset-related charges,” says the press release.
This is Microsoft’s biggest job reduction ever, with the last major reduction of 5,800 coming from Steve Ballmer in 2009.
“The overall result of these changes will be more productive, impactful teams across Microsoft. These changes will affect both the Microsoft workforce and our vendor staff. Each organization is starting at different points and moving at different paces.”
Microsoft will release more details about its “innovation investments” in its fourth-quarter fiscal earning call on July 22nd.