Ireland looks to escape global Microsoft 18,000 job cull
Published 18/07/2014 | 02:30
Software giant Microsoft is to lay off 18,000 people in its biggest ever jobs cull, the company's chief executive has announced. However, it is believed that the effects on the company's Irish operation, which employs 1,200 people, will be minimal.
Satya Nadella said that 12,500 of the 18,000 job cuts would affect the company's mobile operations. Integrating Nokia, he said, "is expected to account for about 12,500 jobs, comprising both professional and factory workers".
"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," he said.
At Microsoft, cuts will be in sales, marketing and engineering, he said.
The move means that Microsoft is letting 14pc of its workforce go. It is expected to cost the firm between €800m and €1.2bn.
In Ireland, Microsoft announced 95 new jobs in late 2013, of which 40 positions remain to be filled. The company is currently planning a new technology campus in south Co Dublin. The Irish operation includes a handful of mobile app developers and Nokia marketing staff.
Microsoft's chief executive said that the global cuts will also hit management positions.
"We plan to have fewer layers of management, both top down and sideways, to accelerate the flow of information and decision making," he said.
"To win in the higher price tiers, we will focus on breakthrough innovation that expresses and enlivens Microsoft's digital work and digital life experiences. In addition, we plan to shift select Nokia X product designs to become Lumia products running Windows."