As reported by Bloomberg earlier in the week and the New York Times saying earlier on Wednesday that the cuts would be announced Thursday, Microsoft is preparing to announce its biggest ever layoffs.
The announcement is expected before the financial markets open on Thursday morning. The layoffs are expected to surpass the 5,800 workers cut during the 2009 crisis, all part of the $600 million cost savings initiative that the previous management had promised would come from the Nokia acquisition.
“As a large company, I think it’s critical to define the core, but it’s important to make smart choices on other businesses in which we can have fundamental impact and success,” Nadella wrote.
Microsoft is expected to cut jobs that overlap with Nokia, like market, software testing. Talk of cuts come 1 week after Nadella sent a memo to workers introducing a new vision for the company with focus on mobile and cloud computing.
“Nothing is off the table in how we think about shifting our culture to deliver on this core strategy,” he said. “Organizations will change. Mergers and acquisitions will occur. Job responsibilities will evolve. New partnerships will be formed. Tired traditions will be questioned. Our priorities will be adjusted. New skills will be built. New ideas will be heard. New hires will be made. Processes will be simplified.”
