Microsoft Cuts 3,000 Employees, Completes July Plan

Oct 30, 2014 07:50 AM EDT | Matt Mercuro

Microsoft Corp. said on Wednesday it cut back 3,000 jobs, thus completely its plan to reduce its workforce by 18,000, or 14 percent of total staff, which was announced back in July.

Most of the 18,000 job cuts were in the phone handset business Microsoft purchased from Nokia earlier this year.

Microsoft got rid of 13,000 employees during the first wave back in July, according to Reuters. That wave included some of the former Nokia employees. It also included employees in the Operating Systems Group and almost about every other group across the company.

In July, the company said the cuts would take place over the course of the year, so Microsoft is well ahead of schedule.

CEO Satya Nadella said in an email to employees this summer that the company would have "fewer layers of management, both top down and sideways, to accelerate the flow of information and decision making."

The software company is also is planning on reducing its dependency on contingent, or non-full-time, employees by 20 percent as part of its realignment, according to ZDNET.com.

"We've taken another step that will complete almost all the 18,000 reductions announced in July," said a Microsoft spokesman, according to Reuters. "The reductions happening today are spread across many different business units and many different countries."

About 25,000 people were added to Microsoft after the Nokia purchase was completed, pushing its headcount to 127,000.

The Microsoft spokesman confirmed that 638 of Wednesday's cuts were in Microsoft's home state of Washington, where it has its Redmond headquarters.

Microsoft will have around 110,000 employees once the reductions are completed.

The world's largest software company took a charge of $1.1 billion in its latest quarterly earnings report for the restructuring and integration of the Nokia phone operation and associated job cuts, according to Reuters.

Former CEO Steve Ballmer cut 5,800 people, or 6 percent of the company's workforce, back in 2009.

Ballmer said the cuts were a "response to the global economic downturn." 

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