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| Microsoft set to axe 18,000 jobs | Microsoft set to axe 18,000 jobs |
| (about 17 hours later) | |
| Microsoft is to cut up to 18,000 jobs marking the deepest cuts in the technology firm's 39-year history. | Microsoft is to cut up to 18,000 jobs marking the deepest cuts in the technology firm's 39-year history. |
| The bulk of the cuts, around 12,500, will be in its phone unit Nokia, which Microsoft bought in April, the firm said. | The bulk of the cuts, around 12,500, will be in its phone unit Nokia, which Microsoft bought in April, the firm said. |
| Microsoft pledged to cut $600m (£350.8m) per year in costs within 18 months of closing the acquisition. | Microsoft pledged to cut $600m (£350.8m) per year in costs within 18 months of closing the acquisition. |
| The cuts are much more severe than the 6,000 initially expected. | The cuts are much more severe than the 6,000 initially expected. |
| The firm employs 127,000 globally, including 3,500 staff in the UK. | The firm employs 127,000 globally, including 3,500 staff in the UK. |
| Microsoft declined to say how many jobs in the UK would be cut as a result of the changes. | Microsoft declined to say how many jobs in the UK would be cut as a result of the changes. |
| Chief executive officer Satya Nadella, who took the helm in February, wants the firm to shift its focus away from software to online services, apps and devices. | Chief executive officer Satya Nadella, who took the helm in February, wants the firm to shift its focus away from software to online services, apps and devices. |
| "Making these decisions to change are difficult, but necessary," Mr Nadella wrote in the announcement to staff. | "Making these decisions to change are difficult, but necessary," Mr Nadella wrote in the announcement to staff. |
| The firm said it also planned to have fewer layers of management "to accelerate the flow of information and decision making." | The firm said it also planned to have fewer layers of management "to accelerate the flow of information and decision making." |
| Microsoft said staff affected by the job cuts would be notified over the next six months, and they would be "fully completed" by the the end of June next year. | Microsoft said staff affected by the job cuts would be notified over the next six months, and they would be "fully completed" by the the end of June next year. |
| In total it said the cuts, including severance pay, would cost it between $1.1bn to $1.6bn (£643m to £935m) over the next year. | In total it said the cuts, including severance pay, would cost it between $1.1bn to $1.6bn (£643m to £935m) over the next year. |
| Daniel Ives, an analyst at FBR Capital Markets & Co, told the BBC that although it was painful the cuts would "put the company in a much better situation for the coming years". | Daniel Ives, an analyst at FBR Capital Markets & Co, told the BBC that although it was painful the cuts would "put the company in a much better situation for the coming years". |
| "It's been a decade of pain and now you finally have a chief executive that's going to be pro-active rather than re-active and put Microsoft in a situation that they could be a successful mobile and cloud player," he added. | "It's been a decade of pain and now you finally have a chief executive that's going to be pro-active rather than re-active and put Microsoft in a situation that they could be a successful mobile and cloud player," he added. |
| Analysis, BBC technology reporter Joe Miller: | Analysis, BBC technology reporter Joe Miller: |
| Satya Nadella has only held the reins at Microsoft for five months, but the Nietzsche-quoting chief executive is determined to shake-up the once dominant firm. | Satya Nadella has only held the reins at Microsoft for five months, but the Nietzsche-quoting chief executive is determined to shake-up the once dominant firm. |
| Microsoft's operating systems, which used to be the outright leader in personal computing, are now only used on 14% of devices, if you take into account smartphones and tablets. | |
| Adapting to what Mr Nadella calls a "mobile-first, cloud-first" world was the driving force behind Microsoft's $7.2bn acquisition of Nokia's mobile handset division earlier this year, and the job cuts announced on Thursday, many of which involve Nokia departments, are designed to "simplify" this process. | |
| The tech industry, Mr Nadella said in an email to employees last week, "does not respect tradition, it only respects innovation," and his hope is that a focus on productivity tools such as Skype and personal assistant Cortana will bring back this said respect. | The tech industry, Mr Nadella said in an email to employees last week, "does not respect tradition, it only respects innovation," and his hope is that a focus on productivity tools such as Skype and personal assistant Cortana will bring back this said respect. |
| Perhaps it will, but not, it seems, without casualties. | Perhaps it will, but not, it seems, without casualties. |
| Last week, Mr Nadella rebranded the firm as "the productivity and platform company for the mobile-first and cloud-first world." | Last week, Mr Nadella rebranded the firm as "the productivity and platform company for the mobile-first and cloud-first world." |
| The cuts are aimed at helping Microsoft better compete with rivals including Google and Apple. | The cuts are aimed at helping Microsoft better compete with rivals including Google and Apple. |
| The last significant job cuts at the firm were in early 2009, when previous chief executive Steve Ballmer axed 5,800 staff. | The last significant job cuts at the firm were in early 2009, when previous chief executive Steve Ballmer axed 5,800 staff. |