Microsoft Announces 18,000 Job Cuts

Microsoft

Microsoft bigwigs shocked staff members after announcing that 18,000 jobs would be cut next year. The announcement came in a memo that acknowledged the recession was to blame for this. Most of the job losses are due to the alignment with Nokia Devices and Services.

The memo made it clear that the first 13,000 job loss notifications would happen over the next six months. All employees will get a severance package for these changes and the tech giant wants to offer help for transitioning into other jobs and possibly other locations.

It is not all bad news, as Microsoft has stated there will be some roles opening up in strategic areas. There is a hope that some of those losing their current roles will be offered a change instead of completely losing their jobs.

There are understandably many questions for employees of the tech giant. Acknowledging this, the memo made it clear that the Senior Leadership Team members would go through expectations and some of the reasons for this happening.

The idea that jobs would be cut was not a surprise for many, as they realized that this was going to happen. The alignment with Nokia made that highly-likely. However, employers were shocked to hear the size of the layoffs. They were not expecting Microsoft to announce that 18,000 jobs would be cut, with 12,500 of them coming from Nokia.

Middle managers are the ones who worry the most that they will lose their jobs. Because of that, many have taken to LinkedIn to update their profiles and have already started looking for new jobs out there. Most of those who will lose their job will have found out already, but there is the six month notice. Some employees may not find out until Christmas, and that will play on their minds over that time. People are also stressed to know that there are 5,000 cuts left after this round.

While there are some jobs available, there is not enough for all the Microsoft employees. Business Insider reports that there are around 3,200 jobs available. They are not just available to current employees either.

Most of the jobs are going in Finland; a country seeing its third consecutive downturn. Unemployment in the country is up to 10.7 percent, which is something the government is struggling to deal with. The good news is that those who are let go will have a support package for the time being. This is not just a financial support package, and there is hope that the employees will find more work quickly because of the job-finding support from the tech giant.

Some of the newly created jobs will be in Finland. The company is creating a new data center, and will need people to man the phones there. However, the data center, which is due to open next month, still needs the building work to finish.

Many employees are understandably on edge. Some still have no idea as to whether they are staying or going, as there are still 5,000 jobs on the line. While the news of jobs going was not too major to start with, Microsoft announcing that 18,000 people would lose their jobs has been a major shock to the system.

By Alexandria Ingham

Sources:

ABC

Business Insider

Business Week

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