If you work inside a large enterprise IT shop, consider this. The world’s largest and most successful enterprise IT organizations just announced a major downsizing after 2 years of restructuring. Their business model is supporting you, and ultimately your customers. Microsoft has recognized the way that they do business needs to change. The business model they used to make them successful in IT had to change.
The Microsoft(s msft) cuts are here and they are deeper than expected. Per the Microsoft press release, the move will entail:
” … the elimination of up to 18,000 positions over the next year. 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 25.”
That is an even deeper cut than the 10 percent expected by some insiders; post-Nokia, Microsoft had about 125,000 employees. And this is much larger than the roughly 5,800 people cut back in 2009. To cover these costs, the company said it expects to take a pre-tax charge of $1.1 billion to $1.6 billion over the next four quarters, including $750 million to $800 million to cover severance and benefits for affected employees.
Here’s Nadella’s email to employees. And in another corporate email, Executive Vice President Stephen…
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I am a Sr. Cloud Solutions Architect for Red Hat.