Microsoft is to axe 18,000 jobs over the next year in a restructure plan to align the recently acquired Nokia Devices and Services business with the company's overall strategy. The job cuts are the deepest Microsoft has made in its 39 year history.
Of the total, about 12,500 professional and factory positions will be eliminated through synergies and strategic alignment of the Nokia Devices and Services business acquired by Microsoft on April 25th.
The actions associated with the plan are expected to be substantially complete by the end of this year and fully completed by June 30th 2015.
The company expects to incur pre-tax charges of $1.1 billion to $1.6 billion over the next four quarters, including $750 million to $800 million for severance and related benefit costs, and $350 million to $800 million of asset-related charges.
The plans were outlined in an email from Microsoft CEO Satya Nadella to Microsoft employees, and an email from Microsoft Executive Vice President Stephen Elop to Microsoft Devices Group employees.
The company employs 127,000 worldwider, including 3,500 workers based in the UK.