Click here to receive Mediabistro’s Morning Media Newsfeed via email.
Microsoft to Lay Off 18,000 Workers, Largest Cuts in History (SocialTimes)
Over the next year, Microsoft is eliminating 18,000 jobs, or as much as 14 percent of its workforce. CEO Satya Nadella wrote a public email to company employees on Thursday saying “every team across Microsoft must find ways to simplify and move faster, more efficiently.” He said that he would give more details on Tuesday, when Microsoft reports its fiscal 2014 results. Deadline Hollywood The layoffs will hit hardest at the Nokia Devices and Services phone handset business, acquired in April. “We are moving now to start reducing the first 13,000 positions, and the vast majority of employees whose jobs will be eliminated will be notified over the next six months,” Nadella said in the email Thursday. Microsoft expects the restructuring to result in as much as $1.6 billion in pre-tax charges over the next four quarters. That will include as much as $800 million for severance and related benefit costs, and up to $800 million in asset-related charges. Variety Microsoft is also getting out of developing original series for its Xbox gaming platform and will close Xbox Entertainment Studios in the coming months. Xbox chief Phil Spencer announced Xbox Entertainment Studios will shutter and that some projects in development and production, including a live-action Halo series, will still be produced. New York Post / Reuters The studio, set up in 2012 under then-CEO Steve Ballmer, said in April it had committed to several projects including Humans, a drama co-produced with U.K. broadcaster Channel 4, and Halo. NYT While Microsoft still makes profits that executives at other companies would be ecstatic to have, it has been beaten on the biggest new trends in tech, including mobile, Internet search and cloud computing. As a result, it is regularly left out of conversations about companies defining the next generation of technology, outflanked and overshadowed by companies like Apple, Google, Facebook and Amazon.