It’s no doubt a huge blow to Finnish tech market. Microsoft has announced the worst job cuts in its 39-year history, with the majority of layoffs (12,500+) to be carried out in Nokia Devices&Services units headquartered in Finland. That’s almost half of the number of employees worked at Nokia D&S when it was acquired by Microsoft.
Global cuts will total 18,000, and is part of company’s promise to cut the annual costs by $600m within 1.5 years after the closure of Nokia acquisition. The company employs around 127,000 workers as of today.
Satya Nadella, the CEO of Microsoft, wants to shift the strategic focus of the company from desktop software developing to providing online and mobile apps and services “for a mobile-first and cloud-first” world.
He said in a letter to the personnel that “making these decisions to change are difficult but necessary”. He said the staff to be affected by job cuts will be notified over six months and cover “both professional and factory workers”.
He added that the cuts at Nokia will also include current Nokia X Android-based design teams with the aim “to shift select Nokia X product designs to become Lumia products running Windows”.