Why Microsoft announced it will eliminate up to 18,000 jobs

Ahead of its second-quarter earnings call on Tuesday, Microsoft is in the headlines for something other than its financial comings and goings. 

The New York Times reports Microsoft plans to "eliminate up to 18,000 jobs over the next year."

This round of layoffs greatly eclipses the company's last major round when, in 2009, Microsoft eliminated nearly 6,000 jobs.

Microsoft CEO Satya Nadella began to prepare employees for the announcement in a recent memo to the company. 

"Every team across Microsoft must find ways to simplify and move faster, more efficiently. We will increase the fluidity of information and ideas by taking actions to flatten the organization and develop leaner business processes." 

While Nadella says the layoffs are a means of making the overgrown tech company more agile, many argue the move is based in money.

To learn more, watch this Newsy video.

Print this article Back to Top