Microsoft CEO Nadella confirms layoffs in email to employees

MUMBAI, INDIA: Microsoft which saw some senior level exits post the recent reshuffle has now set its eyes on 7,500 employees largely from its hardware group.

This would be the second largest round of layoffs at Microsoft; it issued pink slips to 18,000 employees last year.

Satya Nadella, CEO, Microsoft, in an email to the employees, asserted,  "We anticipate that these changes, in addition to other headcount alignment changes, will result in the reduction of up to 7,800 positions globally, primarily in our phone business. We expect that the reductions will take place over the next several months."

Meanwhile, it is learnt that the layoffs primarily in its phone business and will record an impairment charge of about $7.6 billion related to acquisition of the Nokia devices and services business. That comes in addition to a restructuring charge of between $750 million and $850 million.

The new job cuts are expected to affect people in Microsoft's hardware group, among other parts of the company, including the struggling smartphone business that it acquired from Nokia last year in a $7.2 billion deal.

It must be noted that in Q3, Microsoft told Wall Street that it may write down the $7.2bn Nokia mobile and devices business bought by former CEO Steve Ballmer.

It must also be mentioned here that Microsoft has already pulled out of display ads and will hand operations to AOL and AppNexus. Around 1,200 Redmond staffers will be shunted out as a result of the move.

Microsoft is expected to announce results for fiscal year 2015 on July 21, with the new financial year having commenced on July 1.