Microsoft completed the acquisition of Nokia earlier this year for over $7 billion.
The acquisition of the mobile device unit of the Finish company came also gave Microsoft an additional 25,000 employees, an increase of almost 25% for Microsoft. Since the acquisition was completed in April, it has been rumored that Microsoft was not going to keep everyone around and a recent memo from CEO Satya Nadella suggests just that as he promises to “flatten the organization”.
Microsoft has not had any major lay-offs since 2009 when it let 5,800 people go. Given the fact that the 25% increase of staff now puts them above competitor Google when it comes to the number of employees and how competitive they need to be in order to succeed it would be no surprise if the coming cuts will surpass the latest round 5 years ago.
We still wonder if the format market leader of mobile phones was really worth $7 billion, after all Microsoft just slapped Android on to one of the latest Nokia smartphones – so what did they really get other than a bunch of (outdated?) patents. Imagine what the company could have done instead if they invested $7 billion in R&D and god forbid their employees…