Microsoft Announces Worldwide Cuts
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIt's unclear whether a major restructuring announced today by Microsoft Corp. (Nasdaq: MSFT) will affect Indiana operations. Early this year, as part of its Best Places to Work in Indiana application, the company reported 45 employees in the state. Microsoft's Indianapolis office focuses on software and technology consulting. July 17, 2014
News Release
REDMOND, Wash. – Microsoft Corp. today announced a restructuring plan to simplify its organization and align the recently acquired Nokia Devices and Services business with the company’s overall strategy.
These steps will result in the elimination of up to 18,000 positions over the next year. Of the total, about 12,500 professional and factory positions will be eliminated through synergies and strategic alignment of the Nokia Devices and Services business acquired by Microsoft on April 25.
The actions associated with the plan are expected to be substantially complete by Dec. 31, 2014, and fully completed by June 30, 2015.
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.
The plans were outlined in an email from Microsoft CEO Satya Nadella to Microsoft employees, and an email from Microsoft Executive Vice President Stephen Elop to Microsoft Devices Group employees. To read Nadella’s email, see http://www.microsoft.com/en-us/news/press/2014/jul14/07-17announcement1.aspx. To read Elop’s email, see http://www.microsoft.com/en-us/news/press/2014/jul14/07-17announcement2.aspx.
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services, devices and solutions that help people and businesses realize their full potential.
Source: Microsoft Corp.