Microsoft Company CEO Satya Nadella announced on Wednesday they will have to cut off another 7,800 people from employment, mostly acquired from their Nokia deal.
The move aims to restructure their marketing strategy and focusing on their core business objectives. According to CNN Money, it is CEO Nadella’s second major company rebuilding. Last year, he let go of 18,000 employees, mostly working under Nokia’s devices and businesses.
Aside from the vast layoff, Microsoft is expecting to have a $7.6 billion damage charge related to their partnership with the legacy business.
It’s acquisition of Nokia last 2013 was a move made by former CEO and NBA team owner, Steve Ballmer. Different business and independent analysts were critical of the deal. Analyst Ben Thompson described it “like attaching an anchor to said straitjacket and tossing the patient into the ocean” in his business blog, the Stratechery.
Ballmer’s anticipation to be globally competitive against other titan companies like Apple, Google and Samsung by acquiring Nokia has become “a headache that Nadella inherited”, Daniel Ives, FBR Capital Market analyst told the New York Times, “It is really cleaning up Ballmer’s mess.”
Microsoft, now under Nadella’s management, would like to emphasize its development and reinventing the Windows software to battle Apple’s iOS and Google’s Android devices which are widely known by the public.
Most of the employees that are affected by the cut-off are from Finland, where Nokia started their business. Pekka Pekkala, the country’s communications head for prime minister tweeted that around 66% or 2,300 Microsoft staff in Finland will lose their jobs, “pretty much killing the city of Salo.”
In the meantime, Mr. Nadella is creating a good start on its global market by developing new version of Office applications for iOS and Android users and received positive feedback from reviewers and expanding its potential in the mobile business.