Microsoft has announced plans to restructure, potentially leading to 18,000 job cuts. The goal is to refocus the company’s effort, and create a more “agile” company, which will give more of it’s attention to mobile and cloud services. In order to do this, Microsoft will be putting all Windows phones under the Lumia heading, cutting out Android entirely, cutting Nokia MixRadio, and shutting down the Xbox Entertainment Studios.
Earlier this year, Microsoft acquired Nokia, but their strategy may have changed since then, shifting the Nokia product designs to run Windows instead of Nokia’s Android. By doing this, Microsoft will start to unify the operating systems which run on their phones, and offer all of their devices under the Lumia banner instead. Nokia, who is known for their more humble line of phones, will not be designing as many of these basic devices, but rather cheaper smartphones instead.
They also will cut Nokia’s MixRadio, which was formerly only available on Windows phones, but now will expand to Android and iOS devices. Little has been heard about the future of Xbox.
It is expected that the cuts may come from the Devices and Services team, factory workers and professionals alike. It is estimated that there are 12,500 employees in that segment alone. While Microsoft attempts to reorganize both the company and their services, they will be notifying those who will be cut over the next six months.
Microsoft’s CEO, Sataya Nadella, attempts to assuage the concerns of employees by releasing the following statement:
“It’s important to note that while we are eliminating roles in some areas, we are adding roles in certain other strategic areas. My promise to you as that we will go through this process in the most thoughtful and transparent way possible. We will offer severance to all employees impacted by these changes, as well as job transition help in many locations, and everyone can expect to be treated with the respect they deserve for their contributions to the company”
With the goal of “maximum efficiency with a smaller team” and the announcement of these cuts, Microsoft is headed in a much different direction. Rather than competing with Hulu or Netlix with the Xbox, or offering flexible operation system option, Microsoft will assert itself as a new, streamlined mobility company in comparison to the piecemeal operation that it is today. Hopefully this will help the company to drive sales and pull off a large company shift.
Share this Article