Microsoft recently announced its plans to reduce 12,500 ex-Nokia employees as part of the reorganization announced by the new CEO Satya Nadella. This is a major blow for Finland as a country as thousands of people will go unemployed. Finland Labor and Finance ministers raised their concern about this layoffs announcement from Microsoft. Microsoft in response said, “As a responsible company, we strive to do our best to ensure that employees affected by the potential cuts are offered a variety of support measures and advice, including in finding new work.” Finland Labor minister said that Microsoft must fulfill the promise of building a data center in Finland as it announced in September last year. Finland Labor Minister Lauri Ihalainen said the following, “Microsoft’s intention to reduce jobs also in Finland is the bad news we feared,” Ihalainen said. “The least that can be now expected is that it creates a ...

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Yesterday, we reported that apart from the 12,500 former Nokia employees who will leave Microsoft, another 5,500 Microsoft employees will also be shown the door. As per the sources of Mary Jo Foley, every other team from legal to Xbox is affected by this move. It is also reported that the newly formed Operating Systems Group which is responsible for the development of Windows will be affected immediately. Also, Terry Myerson is now shaking up the functional structure of Windows team which was program management/development/software testing structure since Sinofsky’s days. The following is the internal memo sent by Terry Myerson to his group, Re: Focusing our team Team, As Satya shared last week, and we’ve been discussing for almost a year, we are making broad changes in how we engineer products. Thus, today we are restructuring some parts of our team in three areas: consolidating some of our geographically distributed teams, cancelling ...

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Microsoft yesterday revealed their plans for the largest job cuts in their history. Microsoft is planning to reduce the size of their overall workforce by up to 18,000 jobs by next year. In this, Nokia Devices and Services related professional and factory workers are expected to account for about 12,500 jobs. Microsoft also revealed that they will be annoucing the first 13,000 positions in the next 6 months. Microsoft will offer severance to all employees impacted by these changes, as well as job transition help in many locations. European Commission has asked to meet Microsoft to discuss about the layoffs announcement. Commissioner for Employment, Social Affairs and Inclusion László Andor has said the following regarding this matter, “I have asked to meet with Microsoft representatives as soon as possible in order to get more information on the planned redundancies and the measures to alleviate the social consequences, as well as ...

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The Worker Adjustment and Retraining Notification (WARN) act requires companies with 100 or more employees to notify affected workers 60 days prior to closures and layoffs. WARN data includes the name of the employer, business location, number of affected workers, type (layoff or closure) and effective date of layoff or closure. So, Microsoft has filed their listing with the detail that they are going to layoff 1351 employees with the process starting on September 15th. Microsoft Redmond 9/15/2014 1351 Layoff Permanent 7/17/2014 Microsoft today finally revealed their plans for their job cuts after Nokia acquisition. Microsoft is planning to reduce the size of their overall workforce by up to 18,000 jobs in the next year. In this, Nokia Devices and Services related professional and factory workers are expected to account for about 12,500 jobs. Microsoft also revealed that they will be annoucing the first 13,000 positions in the next 6 ...

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As part of the massive layoffs Microsoft announced today, Microsoft is going to shut down the recently formed Xbox Entertainment Studios which was responsible for creating original programming for Xbox platform. CBS entertainment president Nancy Tellem was hired by Microsoft back in 2012 to lead these efforts and their recent production was “Every Street United” which was premiered on Xbox One during the world cup. There are about 12 projects currently in various stages of production. Few months back, this was the position inside Microsoft, Xbox Entertainment Studios has attracted a slew of top Hollywood talent to develop its original programming slate, with names like Steven Spielberg and Ridley Scott attached to two separate scripted projects based on the “Halo” franchise – but that’s only the beginning. Other shows in production include an unscripted series about international street soccer, an original drama about robotic servants in a dystopian world, and a documentary ...

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Apart from the 12,500 former Nokia employees who will leave Microsoft,  another 5,500 Microsoft employees will also be shown the door. As per the sources of Mary Jo Foley, every other team from legal to Xbox is affected by this move. It is also reported that the newly formed Operating Systems Group which is responsible for the development of Windows will be affected immediately. Also, Terry Myerson is now shaking up the functional structure of Windows team which was program management/development/software testing structure since Sinofsky’s days. Under the new structure, a number of Windows engineers, primarily dedicated testers, will no longer be needed. (I don’t know exactly how many testers will be layed off, but hearing it could be a “good chunk,” from sources close to the company.) Instead, program managers and development engineers will be taking on new responsibilities, such as testing hypotheses. The goal is to make the OS ...

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As you all know, Microsoft today announced their largest ever restructuring plan to simplify its organization and align the recently acquired Nokia Devices and Services business with the company’s overall strategy. As a result of it, Microsoft is planning to eliminate up to 18,000 positions over the next year. Of the total, about 12,500 will be professional and factory positions from the Nokia Devices and Services business acquired by Microsoft on April 25. Microsoft is expecting these plans to be substantially complete by Dec. 31, 2014, and fully completed by June 30, 2015. Another important thing for investors is that, Microsoft 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. Read more about it here. Read about Stephen Elop’s mail to Microsoft ...

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Last week we reported that Microsoft is planning for layoffs and they may axe up to 10% of their workforce. Recently, 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, we reported that they will also announce layoffs as part of their quarterly earnings results. Later, Bloomberg reported that Microsoft is planning its biggest round of job cuts in five years, and they may announce it as soon as this week. The restructuring may end up being the biggest in Microsoft history, topping the 5,800 jobs cut in 2009, two of the people said. Some details are still being worked out, two of the people said. Bloomberg also speculated that some of the job cuts will be in marketing departments for businesses such as the global Xbox ...

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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. GigaOM recently reported that Microsoft is going to announce the layoffs soon. Look, [Microsoft CEO Steve] Ballmer buys Nokia and adds 25,000 ...

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