Last week we reported that Microsoft is planning for layoffs and they may axe up to 10% of their workforce. In the e-mail Satya sent to its employees, he mentioned that Microsoft will share more on the engineering and organization changes needed to focus on their bold ambition in July. In addition to the changes, I guess they will also announce layoffs as part of their quarterly earnings results.
We’ll use the month of July to have a dialogue about this bold ambition and our core focus. Today I want to synthesize the strategic direction and massive opportunity I’ve been discussing for the past few months and the fundamental cultural changes required to deliver on it. On July 22, we’ll announce our earnings results for the past quarter and I’ll say more then on what we are doing in FY15 to focus on our core.
Over the course of July, the Senior Leadership Team and I will share more on the engineering and organization changes we believe are needed. Then, at MGX and //oneweek, we’ll come together to build on all of this, learn from each other and put our ideas into action.
When Microsoft announced Nokia’s Devices and Services acquisition deal, approximately 32,000 people were transferred to Microsoft, including 4,700 people in Finland and 18,300 employees directly involved in manufacturing, assembly and packaging of products worldwide. Microsoft’s head count increased by over 25% – 30% as part of this single deal. Whenever such large deals happen, layoffs will follow due to restructuring. During the announcement, Steve Ballmer announced that Microsoft is planning to integrate all global marketing under Tami Reller and Mark Penn to have a unified brand and advertising strategy. Also, Finance, Legal, HR, Communications, DX / Evangelism, Customer Care and Business Development will integrate functionally at Microsoft and ICM / IT will also integrate functionally for traditional IT roles. Given overlap of lots of jobs, everyone is expecting Microsoft to announce the same.