REDMOND (dpa-AFX) - Software giant Microsoft corp. (MSFT) is Thursday laying of 2,100 more employees worldwide as part of the second phase of its larger plan announced in mid-July to cut about 18,000 jobs in a year's time. Microsoft reportedly said the job cuts are spread across multiple business units and countries.
The first phase of the job cuts announced in July itself saw the slashing of about 13,000 positions. Microsoft is still planning to eliminate another 2,900 jobs by July 2015.
Redmond, Washington-based Microsoft had said in July that it will eliminate up to 18,000 positions over the next year as part of a restructuring to simplify its operations and align the acquired Nokia Oyj's (NOK) devices and services business with its overall strategy.
The major chunk of about 12,500 professional and factory position eliminations will come from Nokia operations and other overlapping business with that of Nokia as part of the integration through synergies and strategic alignment. The company completed the $7.2 billion acquisition of the Nokia handset business on April 25.
Microsoft's workforce stood at just above 125,000 employees following the addition of about 25,000 employees from Nokia's handset unit in April. This is billed as Microsoft's biggest round of job cuts in its history that will top the 5,800 jobs cut in 2009.
Microsoft said in July that just as it is eliminating roles in some areas, it is also adding roles in certain other strategic areas. The company plans to have fewer layers of management, both top down and sideways, to accelerate the flow of information and decision making.
Microsoft's new CEO Satya Nadella, who took over from Steve Balmer about seven months ago, had earlier revealed in a memo that he is looking to 'flatten the organization and develop leaner business processes.'
The company had said in July that a major chunk of the total job cuts are expected to be completed by December 31, 2014, and fully completed by June 30, 2015.
The company had revealed in July the larger restructuring will see it incurring 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.
These job cuts and the recent shake up of the company's board is expected to auger well for Microsoft and the new CEO as six of the ten-person board will have joined the board since 2012, which is expected to give the company fresh thinking in the board.
MSFT closed Thursday's regular trading session at $46.68, up $0.16 or 0.34% on a volume of 35.56 million shares.
Copyright RTT News/dpa-AFX