Redmond continues its internal reorganization process

Jul 2, 2015 07:11 GMT  ·  By

Microsoft has recently announced that its display ad business will be sold to AOL, and as part of the process, no less than 1,200 workers will leave too, but it turns out that this isn’t the only change that the company is planning to make on its workforce these days.

Fortune writes that Microsoft is also discussing a new layoff behind closed doors, which could see several employees from its mobile division leave the company, as part of the same internal reorganization process that was started when CEO Satya Nadella replaced Steve Ballmer at the helm of the company.

The new internal changes are prepared for fiscal year 2016, which started on July 1, but it’s not yet clear when Microsoft plans to make them public. Additionally, there’s still no confirmation that this information is true, so take it with a grain of salt until Microsoft releases a statement to confirm or deny the rumored layoffs.

Layoffs expected

And yet, such a job cut is again expected, especially after Satya Nadella’s email last week, when he announced that tough changes would be made, obviously without providing any specifics.

It’s believed, however, that Nadella referred to some product changes and layoffs that would help Microsoft ensure long-term profitability and focus on the products that actually generate revenue.

Last year, Microsoft fired 18,000 people after the takeover of Nokia’s Devices and Services unit, completing a painful reorganization process in multiple rounds, as the company advanced with its integration of the newly purchased asset.

Earlier this year, Nadella announced that Stephen Elop, the former Nokia CEO and the current boss of Microsoft’s Devices and Services division, would also leave, despite the fact that he joined the software giant again when the acquisition of the Finnish phone manufacturer was completed.

We’ve reached out to the company to ask more about these tough changes, so we’ll update the article, should we receive an answer.