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Microsoft to Lay Off 18,000 Employees in the Next Year

 & Angela Moscaritolo Managing Editor, Consumer Electronics

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Microsoft is eliminating 18,000 jobs over the next year as it works to integrate the Nokia handset business it acquired in April, CEO Satya Nadella announced on Thursday.

About 12,500 of the reductions are expected to come from Nokia, including professional and factory workers.

In a memo to employees, Nadella also said Microsoft will largely nix work on Android-based devices. "We plan to shift select Nokia X product designs to become Lumia products running Windows," he wrote. "This builds on our success in the affordable smartphone space and aligns with our focus on Windows Universal Apps."

In a separate email to employees, Microsoft exec - and former Nokia chief - Stephen Elop said "we expect to make this shift immediately while continuing to sell and support existing Nokia X products."

"Whereas the hardware business of phones within Nokia was an end unto itself, within Microsoft all our devices are intended to embody the finest of Microsoft's digital work and digital life experiences, while accruing value to Microsoft's overall strategy," Elop said. "Our device strategy must reflect Microsoft's strategy and must be accomplished within an appropriate financial envelope. Therefore, we plan to make some changes."

And change it will. "We are moving now to start reducing the first 13,000 positions, and the vast majority of employees whose jobs will be eliminated will be notified over the next six months," Nadella wrote. "My promise to you is 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 this company."

The cuts come less than three months after Microsoft completed its $7.2 billion acquisition of Nokia's smartphone and mobile phone businesses. Following the Nokia deal, Microsoft's employee headcount rose from about 99,000 last year to 127,000 as of last month, according to the Associated Press.

Nadella last week first hinted that layoffs might be on the horizon. "Organizations will change. Mergers and acquisitions will occur. Job responsibilities will evolve. New partnerships will be formed. Tired traditions will be questioned," Nadella wrote in a lengthy memo to staffers.

Nokia X2This round of layoffs eclipses the 5,800 cuts made five years ago — the largest in Redmond's history. Microsoft has handed out a number of pink slips since then, dropping an undisclosed number of marketing and advertising jobs two years ago.

The Nokia X, meanwhile, made its debut at Mobile World Congress in February, and the follow-up X2 (pictured) was revealed just last month. The devices are not the Android many have come to expect, though. Nokia built the Nokia X Software Platform 2.0 from the Android Open Source Platform (AOSP), making it a mix between Nokia's Asha line and low-end Windows Phone line, mimicking the tile-based look of the latter, but integrating some of the user-friendly features from the former.

For more, check out How the Nokia X2 and Moto X+1 Mislead You. Also see Microsoft's Nokia Deal: What it Means and Winners and Losers From Microsoft's Nokia Acquisition.

About Our Expert

Angela Moscaritolo

Angela Moscaritolo

Managing Editor, Consumer Electronics

My Experience

I'm PCMag's managing editor for consumer electronics, overseeing an experienced team of analysts covering smart home, home entertainment, wearables, fitness and health tech, and various other product categories. I have been with PCMag for more than 10 years, and in that time have written more than 6,000 articles and reviews for the site. I previously served as an analyst focused on smart home and wearable devices, and before that I was a reporter covering consumer tech news. I'm also a yoga instructor, and have been actively teaching group and private classes for nearly a decade. 

Prior to joining PCMag, I was a reporter for SC Magazine, focusing on hackers and computer security. I earned a BS in journalism from West Virginia University, and started my career writing for newspapers in New Jersey, Pennsylvania, and West Virginia.

The Technology I Use

My little Florida beach bungalow is brimming with smart home tech. I have a smart speaker or display in every room, allowing me to control other connected devices by voice. The Nest Hub on my bedside table lets me set wake-up alarms, control my smart light bulbs, and set the temperature on my smart thermostat. I use the Amazon Echo Show 8 on my kitchen counter to browse recipes, reorder protein powder, check the weather, and watch the news while I do dishes. 

Because I suffer from allergies, air purifiers are essential. My favorite model is the Dyson Purifier Cool TP07, which doubles as a fan and continuously sends indoor pollution data to its companion mobile app. 

My pitbull Bradley sheds, so a good robot vacuum is a must. I currently use a premium Ecovacs Deebot that can both vacuum and mop, empty its own dustbin, and wash its own mop cloth. 

For fitness, I like to mix up my routine with cycling, indoor rowing, running, and strength training in addition to yoga. I take classes on the Tonal 2 smart strength training machine, I row indoors on an Aviron machine, and track my beach runs with an Apple Watch while listening to music on my Apple AirPods Pro. On the weekends, I love riding e-bikes like the rugged, beach-friendly Aventon Aventure for fun and fitness.

My job involves a lot of virtual meetings, so a quality webcam, microphone, and ring light are important. I use the Jabra PanaCast 20 webcam, the Elgato Wave: 3 microphone, and a Yesker tripod ring light. 

As for my preferred phone platform, I'm an iPhone person, but I've also extensively used Android for product testing.

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