Earlier this year Microsoft announced that it would be cutting 1,850 jobs but now it appears that the company intends to cut an additional 2,850 jobs that will likely hit its phone hardware and sales divisions the hardest.
In a 28 July Microsoft 10-K filing with the US Securities and Exchange Commission, the company laid out its plans for additional job cuts, stating: “In addition to the elimination of 1,850 positions that were announced in May 2016, approximately 2,850 roles globally will be reduced during the year as an extension of the earlier plan, and these actions are expected to be completed by the end of fiscal year 2017.”
Microsoft had 114,000 full-time employees as of 30 June with 63,000 of them working in the US according to the SEC filing. A spokesperson from the company was unwilling to say how many of the employees facing job cuts had already lost their positions.
In July of 2015, Microsoft first announced that it would be laying off 7,400 people during the fiscal year of 2016. The majority of the job cuts were to occur in its phone hardware business which has struggled for some time. Microsoft's decision to acquire Nokia also led to a $7.6 billion write down along with a restructuring charge that was between $750 to $850 million.
Additional cuts to the company's phone hardware business were made in February of this year with the announcement that there would be more job cuts in addition to the original 7,400. Then in May 2016, Microsoft said that it would be laying off 1,850 more people connected to its phone business. However this did not include the 4,500 jobs that were cut when the company sold its feature phone business to FIH Mobile.
A great deal of the employees who will be laid off in the latest round of 2,850 job cuts have been notified.
Microsoft has made a great number of changes to its organisation as it completes its transition to the cloud and unfortunately those working in its phone hardware and sales divisions have paid the price to facilitate this change.
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