Recently, Microsoft [microblogging] CEO Nadella employees in the company’s internal e-mail in the media, including Microsoft for Nokia [microblogging] layoffs reached 1.25 million.
E-mail, said the job cuts up to 18,000 Microsoft employees, which relate to Nokia devices and services sector employs over 12,500, accounting for about 70% of the scale layoffs. It is understood that this is Microsoft’s largest one ever layoffs.
The main reason for the layoffs, Microsoft officials told the media that the change is committed to making your Nokia device with the company’s overall strategy to achieve consistent and focus on making the greatest contribution to the field of devices on the overall strategy.
In fact, early in the week before the announced layoffs, Microsoft Nadella has proposed a new CEO for Microsoft’s future plans, intentions will be Microsoft playing a “mobile first, cloud-first” as the core of the company, productivity and platform will be treated as development priorities, it also means that as a hardware device manufacturers Nokia, will be more integrated into the grand strategy.
In fact, last Friday Microsoft’s Beijing factory layoffs have begun, the number of layoffs of 3,000 people, mainly involving Beijing Nokia’s R & D department. Currently the area were affected, including Nokia in Beijing, Tianjin, Dongguan three factories. Previously Nokia CEO Elop said before, the future of the mobile phone manufacturing industry will put Hanoi, Beijing and Dongguan retain some manufacturing operations will be transferred to other manufacturing operations in Mexico and Brazil.
However, it is worth noting that the Nokia factory in Chengdu, but does not seem to be affected. According to public information, in June, Nokia Chengdu was also because of a shortage of manpower and recruitment of administrative intern. It is reported that Nokia Chengdu mainly on sales is not responsible for the production of business phone equipment.
For the Nokia layoffs, perhaps related to its performance. According to Nokia’s recently released 2014 first quarter earnings on sales of only € 19.29, down nearly 30%, net profit of -3.39 billion euros, a decrease of 97% over last year.
It is worth mentioning that the previous Nokia CEO Elop will serve as vice president of Microsoft, responsible for Microsoft’s devices and services business. And in 2010 before Elop as Nokia CEO, served as president of Microsoft’s corporate sector, who worked on Nokia phone software. Elop as not much improvement in the sharp drop in mobile phone sales this three-year, Nokia CEO of Nokia Company’s performance during the period, its market share was Samsung [microblogging], on Apple and other mobile phone manufacturers who was home, so halloysite S & P also repeatedly been questioned markets its management capabilities. Also because of its performance in 2012 has shrunk by nearly half their salary, bonus items to zero.
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