The day has arrived. Microsoft, had previously announced that it would be “restructuring” its business to make it better and nimble. To do this, the company decided to cut 18,000 jobs. This was the biggest job cut in the company’s history. So as planned, the company is slowly cutting its fat down and has now handed pink slips to 2100 employees.
In July this year, Microsoft’s CEO Satya Nadella had sent out a memo to its employees stating that they would be cutting jobs to make “fewer layers of management, both top down and sideways, to accelerate the flow of information and decision-making.” Most of these jobs came from the newly acquired Nokia’s stable.
ZDNet reports that 747 of the employees were situated in Washington, 160 were in California. Microsoft’s Silicon Valley Research arm has also been shut down effective today. There will be one more major job loss coming up. The company had recently got bad press for offering Nokia 630 to workers at the Nokia plant in China for quitting their job.
Microsoft has to take on a whole new world if it wants to be a name that can be a part of the future. It is still the biggest corporation with the Windows operating system holding a monopoly over the computers around the world. But the world is fast moving towards mobile and to succeed in this market, Microsoft has to strive hard.
The job cuts do make business sense, but they will hurt the folks who were dependent on the job for their bread. For now, we can just wait and watch if the biggest job cut in Microsoft’s history actually amounts to anything for the company.