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Microsoft to cut 18,000 jobs -- but Xbox will only see 'limited change'
Microsoft to cut 18,000 jobs -- but Xbox will only see 'limited change'
July 17, 2014 | By Mike Rose

July 17, 2014 | By Mike Rose
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    5 comments
More: Console/PC, Business/Marketing



As Microsoft announced today that it will cut 18,000 jobs at the company during the next year, vice president Stephen Elop said that the company will now focus its efforts on its phones, Surface, and Xbox businesses.

Microsoft expects to incur pre-tax charges of up to $1.6 billion over the next 12 months, as it pays severance and charges to the thousands of employees it plans to let go.

But it sounds like the Xbox division will remain fairly intact. In an open letter to employees, Elop said that building on its current strengths, including its Xbox brand, is now essential.

"More broadly across the Devices team, we will continue our efforts to bring iconic tablets to market in ways that complement our OEM partners, power the next generation of meetings & collaboration devices and thoughtfully expand Windows with new interaction models," says Elop.

"With a set of changes already implemented earlier this year in these teams, this means there will be limited change for the Surface, Xbox hardware, PPI/meetings or next generation teams."

Microsoft CEO Satya Nadella also noted that the Nokia Devices and Services division is to be better integrated into Microsoft as a whole.


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Comments


Rodolfo Rosini
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"Elop said" well Elop said a lot of things about Nokia just a year ago so I would take his statements with a pinch of salt

Troy Walker
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agreed.... from one "burning platform" to another.

perhaps he needs the nickname "pyro"

seriously, if anyone gets this guy in their company... just get ready to bail. asap.

Michael Wenk
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Ouch, not a good day for MS folks. Hopefully most of the ones affected were already looking for other opportunities, as the Nokia deal would be a clear flag that its a coming, regardless of what management says.

Kris G
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I think this day was coming for Nokia the second they hired Elop as CEO.

Troy Walker
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Hopefully Nadella will wise up to that clowns act, and quietly ex-communicate him from the chapel. seriously.


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