Microsoft is announcing its biggest ever job cuts today, affecting 18,000 employees. In a memo, Microsoft CEO Satya Nadella says the company will cut 18,000 positions in the next year, with former Nokia employees expected to account for around 12,500 jobs. "We are moving now to start reducing the first 13,000 positions, and the vast majority of employees whose jobs will be eliminated will be notified over the next six month," says Nadella.
While the number is significant, it's not surprising Microsoft is focusing its cuts on Nokia staff. The software maker pledged $600 million in annual cost savings within 18 months of completing the acquisition. Regardless, the 18,000 job cuts are the biggest reductions ever for Microsoft, topping the 5,800 headcount reduction from 2009. "Our workforce reductions are mainly driven by two outcomes: work simplification as well as Nokia Devices and Services integration synergies and strategic alignment," says Nadella. Microsoft now plans to share further details about its "innovation investments" in its July 22nd earnings call.