The layoffs quietly made by Microsoft last week will be the “last of the anticipated broad cuts” from the restructuring announced last year, the company says.
Microsoft’s latest cuts, first reported by GeekWire on Saturday morning, focused heavily on the company’s IT department, signaling that the company has finished the restructuring of its product groups and major divisions. The cuts are part of the final stages of the planned 18,000 layoffs announced by Microsoft last year as part of a broader restructuring initiative.
In a follow-up statement, Microsoft says, “We expect this to be the last of the anticipated broad cuts as part of the restructuring plan announced last July.”
Reading that statement closely, the reference to “broad cuts” leaves the door open for more targeted cuts prior to the end of the company’s fiscal year on June 30, which is the deadline the company originally gave for completing the restructuring.
Microsoft cut hundreds of jobs in the latest round of layoffs, and any future cuts as part of the restructuring would likely be smaller in scope. Some but not all of the latest cuts were at the company’s Redmond headquarters.
The overall reduction of 18,000 positions represents about 14 percent of the 127,000 people employed by the company as of last June. Microsoft CEO Satya Nadella said at the time of the original announcement that the goal was to have “fewer layers of management, both top down and sideways, to accelerate the flow of information and decision making.”