Microsoft Declares War on Middle Managers and Khaki Pants | Businessweek


Welcome to Microsoft, Nokia employees—you’re out of a job.

So came the message on Thursday as Microsoft MSFT announced plans to fire as many as 18,000 people over the next year. The bulk of the layoffs, about 12,500 people, will come from the Nokia NOK devices and services business that Microsoft officially acquired in April. Most of the rest of the firings will affect people with overlapping jobs, furthering new Chief Executive Officer Satya Nadella’s pledge to create a leaner, meaner, faster-moving organization. Grrr.

It’s not easy firing this many people—especially when you’re Microsoft, which hardly ever fires anyone, and when you’re dealing with Finland, which also has a thing against firing people. The company did it with two memos and a press release. The first memo came from Nadella, who explained how the layoffs fit into the strategy outlined in his memo from last week. The second came from Stephen Elop, the former Nokia CEO and now Microsoft executive, who never really managed to revive Nokia’s business, delivered the pride of Finland into the clutches of Microsoft, and must be feeling some measure of guilt about all this. Right? A staggering 40,000 Nokia employees had already lost their jobs over the past few years, as the phonemaker transitioned from global market power to Harvard Business School case study.

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