Microsoft is to cut up to 18,000 jobs from its workforce, with the majority of the cuts – around 12,500 – being made in its phone unit Nokia, which it bought in April.
The cuts are much more severe than industry figures were expecting, and represent the deepest cuts in the companys 39-year history. Microsoft has pledged to cut $600m (£351m) per year in costs within 18 months of closing the acquisition of Nokia.
Satya Nadella, who became chief executive officer in February, has made clear that he wants the company to shift its focus from software to online services, devices and apps. 
In a statement to staff, he said that “our workforce reductions are mainly driven by two outcomes: work simplification as well as Nokia Devices and Services integration synergies and strategic alignment” and promised staff that “we will go through this process in the most thoughtful and transparent way possible.”
