Microsoft CEO Satya Nadella writes on 'headcount alignment changes'; commits to help in transition

Microsoft CEO Satya Nadella sent out an email to its employees clarifying the move to downsize the workforce. For those who could recall, would admit, Nadella's email was more sensitive compared to a similar memo by Ex-Nokia chief Stephen Elop


Microsoft has cut nearly 7 percent of its workforce. That leaves approximately 7800 employees, without jobs. In addition, $7.6 billion has been written off. Most of the job cuts have been related to its Nokia phone business, which the company acquired last year. Microsoft CEO Satya Nadella sent out an email to its employees clarifying as to why he has made this move along with a few more details. For those who could recall, would admit, Nadella's email was more sensitive compared to a similar memo by Ex-Nokia chief Stephen Elop while announcing the planned reduction of 18000 employees.

According to the email, Satya Nadella stated that he wished to update all his employees on decisions which impact the phone business shared more information on mapping and display advertising announcements. He said: "I don’t take changes in plans like these lightly, given that they affect the lives of people who have made an impact at Microsoft. We are deeply committed to helping our team members through these transitions."

Nadella also made some announcements regarding their company's phone business. He claimed that "Microsoft will take an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services business in addition to a restructuring charge of approximately $750 million to $850 million."

Satya Nadella has affirmed Microsoft's focus towards first-party devices which comprises smartphones. However, the company is focusing on 'reinventing' its efforts on the phone business. Nadella stated that at the moment, the company wants to focus on growing a standalone Windows ecosystem which focuses on their Lumia flagship rather than just a standalone phone business. He wishes to offer better products, such as smartphones along with three customer segments where, they 'can make unique contributions and differentiate through the combination of their hardware and software.'

His email further stated vital information about their mapping and advertising business. A few days ago, Microsoft announced that their mapping business and some of their 'imagery acquisition operations' was transferred to Uber. Nadella believes that this move by the company will deliver better map products, such as Bing Map app for Windows along with Bing Maps for Enterprise APIs to a larger audience.

Microsoft will now focus to sharpen its advertising platform as well. Nadella mentions in his email that the company will focus on Search, while it partners with  AOL and AppNexus for display purposes. The Bing platform will now power search and search advertising across the AOL portfolio of sites, along with partnerships the company already has with Yahoo!, Amazon and Apple.

Today, Microsoft CEO Satya Nadella would hold a Q&A sesion with employees to address their queries. To read the complete email from Nadella to Microsoft employees, click here.


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