Flip and reverse

17 July 2014 By Robert Cyran Follow @rob_cyran

More than two-thirds of 18,000 announced job cuts at the $370 bln software company relate to just-acquired Nokia. Xbox also is gently being moved out of Microsoft’s central mission. Boss Satya Nadella is undoing his predecessor’s work in a tactful and value-creating way.

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Microsoft said on July 17 that it would cut 18,000 jobs, or nearly 15 percent of its workforce. About 12,500 of the positions will come from eliminating overlaps with Nokia, which the software company bought in April. That $7.2 billion acquisition added 25,000 people to Microsoft’s payroll.

The company expects to take a pretax charge of up to $1.6 billion over the next year to account for the cost of layoffs.

Microsoft shares gained 3 percent in morning trading, reaching a 14-year high

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