Microsoft Announces Record 18,000 Layoffs, Three Time More Than Expected

Tyler Durden's picture

While the news was reported earlier this week, it is perhaps notable that what was once considered the leading US tech company has also succumbed to the great "jobless" US recovery (in which the US economy is somehow adding 200K+ jobs every month even as it is firing millions). Furthermore, what was supposed to be 6,000 layoffs has just tripled to 18,000, which also happens to be the largest round of layoffs in MSFT history, surpassing the previous record of 5,800 set back in 2009.

From the PR:

Microsoft Corp. today announced a restructuring plan to simplify its operations and align the recently acquired Nokia Devices and Services business with the company's overall strategy.


These steps will result in the elimination of up to 18,000 positions over the next year. Of the total, about 12,500 professional and factory positions will be eliminated through synergies and strategic alignment of the Nokia Devices and Services business acquired by Microsoft on April 25.


The actions associated with the plan are expected to be substantially complete by Dec. 31, 2014, and fully completed by June 30, 2015.


The company expects to incur pre-tax charges of $1.1 billion to $1.6 billion over the next four quarters, including $750 million to $800 million for severance and related benefit costs, and $350 million to $800 million of asset-related charges.

If only Tim Geithner had qualified his "Welcome to the Recovery" August 2010, NYT oped a little bit better, none of this would have been a surprise. Actually, it isn't a surprise at all. And now, back to MSFT stock which surges on the news and lifts the market to recorder highs even as thousands more end up on the street, which has largely been the whole story of the "recovery" to date.

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alien-IQ's picture

Ahh yes, the sweet sound of economic recovery.....

Georgia_Boy's picture

18,000 new jobs soon to be announced in India

tarsubil's picture

I don't think they even bother with hiring anymore. They'll use the savings to buy back stock from executives.

pods's picture

So, better than expected?


Save_America1st's picture

obama will now announce that this isn't 18,000 lost jobs, because those people now have the opportunity to get another job, and so he will count them as 18,000 new jobs created. 

it's the new Common Core math, like 2+2=5  

The obama drones love that shit.  ;-)


GetZeeGold's picture



DOW 18K in no time with fundamentals like this.

Shocker's picture

No Comment:

Layoff / Business Closing List:


Gaius Frakkin' Baltar's picture

But I thought Microsoft couldn't get enough workers to fill their positions??? Oops, this doesn't look good for Gate's amnesty agenda.

GetZeeGold's picture



Windows 9 is coming out in spanish only.....and this time they're taking away the start menu for good.

Richard Chesler's picture

Would you like curry with that?


Oh regional Indian's picture

So that is how Spain was finally to be destroyed.

And Latin america too....

How do you say noooooooooooo......en espanol?

StychoKiller's picture


Pleeze let the Brillant idjuts that thought this was a great idea be amongst them!

toady's picture

This is typical when a company buys another company, especially in tech. They only buy for the intellectual property, then hammer the humans.

Is there a step in the merger process where the buying company says they won't get rid of the "new" employees? I don't think so.

So, lesson learned, if your company is ever purchased by another, start working on your resume or get into the division with the intellectual property the buying company wanted.

Vampyroteuthis infernalis's picture

In the near future "Software Engineer" will be synonymous with poverty.

DaveyJones's picture


For the last fifteen years, I have lived in a development about twenty miles from their main campus. THe neighborhood was built in 1999 and we picked it because the houses were very modest but the yards were big, it was still in a "good school district" and we were the poor people in the area, with 2 million dollar homes about two blocks over. Because the houses are petite, over the last 200 months, we've watched the "evolution" of Bill's worker bees. In the beginning, it was Indian but those guys have now become too expensive for the McDonalds of Micro-Computers. Bill has moved on to Russians and now, overwhlemingly, the Chinese. There's also a sprinkling of South American, Middle Eastern and just about any other place that actually makes an effort to teach their children the hard sciences.

 It's been fasciniating watching the world knock on your door just as the rest of the globe begins playing ding dong ditch with your dollar  I have to say it's been a weird therapy session being surrounded by folks who actually appreciate a small car and house with garage doors you can still count on one hand. Sometimes I feel like I've entered a time warp and I'm back with my dad and brothers in a weird world where you actually play outside with your friends and neighbors. And when you walk two blocks west where the homes are twice as much, the streets are empty except for the dogs who bark behind the invisible fence. Many of these folks live incredibly modest and insist that somenone stays home while their children reach some critical height. The local schools have also changed and hard science and an extinct subject called world geography is finding its way back to the blackboard.   

Its more than a little ironic that Bill's criminal domination has some opposite effects. Sometimes my neighborhood reminds me of something that sticks in my head from some peak oil / peak debt lecture - that the biggest threat to the American way of life... is the American way of life. One way or another, austerity is coming as these bastards have lit too many magic birthday candles while they party away our troubles. The best I can do is learn from sites like this and "regular" people all over the world to get a little perspective.             

conspicio's picture

+1 for making Common Core references in any story about Bill Gates. It's his baby, ya know...

yogibear's picture

Exactly. Why bother? Just do buybacks and collect larger bonuses.

Titus's picture

This is just half of Nokia.

Nokia was the last non-US mobile phone and OS (i.e. monitoring device) manufacturer. Until the MSFT purchase. And then there were none.


NoDebt's picture

Blackberry?  Are they still in business?

pods's picture

Quick Blackberry story. I was fishing at the beach and the rangers came by. We talked for a bit and then they asked for the license. I dug through my tackle box looking for my printed out copy but to no avail.

Told the guy I just looked it up the day before online.  So, I offered to look it up online.  He kinda looked at me funny.

Popped open the browser on the Z10, found and logged into the DEC website, popped in my #, clicked renew  and showed the guy the valid dates of my current license.  Meanwhile, my better half's iphone didnt even have service on the beach (cape hatteras).

Showed the guys and they said okay, then one guy asked me how I did that, and that the DNR officers have a computer program (only for them) that they can look stuff up and also an app, but the app doesn't really work.  Told them I just did it online.  
Bottom line is the phone just does what I want it to.


eclectic syncretist's picture

Yes, but the learning curve is too steep for most people, who are to lazy to think or learn.

Titus's picture

BBRY is Canadian.

So, what's your point?


toady's picture

The best thing about research in motion is when you're looking for a job you can search "rim jobs".

Mitzibitzi's picture

I really liked the BB that the wife used to have. Cool bit of kit apart from the absolutely terrible battery life. Even her new Windoze Nokia has a better battery - and I'd consider that to be pretty shit compared to my old Sony-Ericsson.

Da Yooper's picture

Furthermore, what was supposed to be 6,000 layoffs has just tripled to 18,000.


Thats just another example of liberal common core math

the figures dont lie


but the liars sure can figure

redd_green's picture

The jobs were already moved there.

Dr. Engali's picture

The 18,000 people replaced probably trained their Indian replacements.

replaceme's picture

I've been part of that play before; in our case, the Indian workers think the company is growing, had no idea that they were being brought in as cost savers / replacements.  That math is nowhere near what it used to be - we used to figure 5 Indian workers for 1 American on a cost basis, was down to just about 2 to 1 before I moved on.  I never had any animus towards the Indians, had trouble with the company selling off parts of the business to meet quarterly goals - that's just slow suicide, for the company and the country. 

Dr. Engali's picture

I've had a lot of friends who told me a similar story, and I was always amazed by this phenomenon. I think it speaks volumes about the character of an individual who knows they are training their replacement yet holds no hard feelings towards their replacement. My hat's off to you.

Ghordius's picture

my nephew was just replaced by 14 Indians. though this is the third time, they had to re-hire him twice, before. interestingly, he costed as much as 8-10 Indians, but his management had a top-down decision involving some 800 employees, so... megacorporation madness, as usual

junction's picture

Now Satya Nadella can fill a batch of new jobs with H2B visa workers from India.  I wonder if Nadella got his first job at Sun Microsystems under the H2B program.

Dubaibanker's picture

India is so passe.....Microsoft did not buy Nokia's largest phone production facility in the world in Chennai, due to which over 5,700 employees were laid off recently.

Now, due to Nokia's reduction of staff from 12,000 in 2010 to less than 1,000 today, Foxconn is having trouble, as a supplier, who should lay off about 5,000 this month and so is BYD from China who should also lay off a thousand or so.

All work is now shifting out of India whether outsourcing or manufacturing from foreign countries due to inflation, labour issues, retrospective taxation, lack of power and proper infra, corruption........Work is moving to Philippines for call centres and Vietnam for manufacturing.

Good snapshot of the whole situation from the local labour union in conjunction with Mexican trade union and Asian one:

Oh regional Indian's picture

Excellent points DubaiB.

India is a really strange story right now. The software sector, so long dependent on Dollars and Euros is now furiously trying to nearshore, inshore or whatever the new shoreshite of the day is. Basically sell their bloated cost structure ot Indian companies now.

Meanwhile, the Rupee is kept artificially weak, making the rest of our lives miserable, direct impact on fuel prices, general inflation.

India is a basket case and yet, also probably a big winner over the next 7-10 years. Change is under-foot.

Ghordius's picture

India is like an elephant. looks slow. the biggest story for us Europeans is that it's more urbanized, now, than India itself realizes

Dubaibanker's picture

Ghordius and ORI,

While the actual population of Indian cities has been rising mostly due to rapidly rising population, not just urbanization trends, unlike in China etc but for the following reasons, reverse urbanisation has now become a trend which will accelerate in the years ahead:

1. Lower GDP growth

2. Lower jobs created. Apparently, India creates only 2m jobs though 10m pa are required for over a decade now. Thus they have a massive backlog while population grows rapidly.

3. Super high inflation in cities of between 10% to 20% PA across everything.

4. Miserable healthcare and sanitation in cities causing higher expenditure by the poor on health care and lack of Govt support.

5. Amalgamation of poverty and unemployment leading to rape epidemics in India, Last week was a rape of an 81 year old in Delhi, today is rape of a 6 year old in Bangalore.

6. Extremely high rental rates even in the shanty towns in cities. Apartments are running at USD 250pm in below average areas to USD 850 pm in above average areas for 1 bedroom apartments in large urban centres causing problems even for the middle classes because incomes are stagnating for the urban middle class.

With all the stress due to above and recent massive decline in employment from outsourcers, banks, car dealers, mall employment, gold jewellers, construction etc .......reverse urbaniszation has become a trend because back in rural areas there is no rent to pay, food is cheaper, air is fresh and inflation is lower.

India has gone barely from 26% of its population being urban in 1994 to 32% today. Rise of 6% in 20 years.

While China has marched from 30% in 1994 to 53% today. Rise of 23% in 20 years.

Since both have almost identical populations, therefore, China has achieved a massive urbanization exxceeding its rural population while India is at a spot where China was in 1996 and the gap is widening further hence the situation has grown vastly different in the past 20 years.

We can see how the currencies of both the countries are different as well. 1 USD gets INR 60 while 1 USD gets CNH 6.20 today.

20 years ago, USD  INR was INR 30.00 and today is INR 60.

20 years ago, USD CNH was CNH 8.60 and today is CNH 6.20.

Ratio between CNH INR was 3.48 in 1994 while today the same is at 9.67.

India is clearly slowing down and losing ground on the global stage, especially since the global crisis of 7 years ago started from when both the FDI and the exports kept weakening and therefore most companies in India are bankrupting themselves due to weak profits and high borrowing rates of 15% to 20% pa over an extended period of time.

dochood's picture

"Amalgamation of poverty and unemployment leading to rape epidemics in India, Last week was a rape of an 81 year old in Delhi, today is rape of a 6 year old in Bangalore."


I always wondered what caused rape.  I thought it was lack of morals and disregard for the feelings and well-being of the victim (i.e., evil).  Now I see that it is an "amalgamation of poverty and unemployment."  Thanks for the clarification.

Dubaibanker's picture

Lack of morals do not matter in India because millions live in desperate poverty with utter hopelessness while they see roads clogged with millions of cars and actresses on movie screens running half naked and girls in short skirts moving around on TV and streets. The poor probably have contempt for everyone in India and thus when they have too much time (due to no job) and then no money (to pay for sex due to lack of work), they end up becoming this monster with no morals, no money and lots of time. They dont have the understanding to worry about the victim in urban centres because they are illiterate, poor and unemployed at the same time.

You have to meet some of such people to realise how hopeless they are and that they cannot turn to no one, least of all the police or the Govt who actually beat the crap out of them or rape men and women alike in jails, police stations and outside.

The intent of amalgamation of poverty and unemployment is a new monster that has been created lately in india on top of illiteracy, utter disregard for laws leading to hopelessness and despair causing rape due to frustration. The rapists actually think that they can get away with it.

That is how we see all the rapes which are not as many as you would think, given 1.25bn population of India. If we go with percentages, then it is about to get lot more worse across India in the coming years since unemployment and poverty both are on the rise.

kareninca's picture

"no money (to pay for sex due to lack of work)" ???

Wow, your world view is so alien.

"Causing rape due to frustration"

Again, beyond alien.

Well, they rapists are right.  They do get away with it in India.

You know, there have been people in the history of the human race, who were very poor, had time on their hands, and didn't thereby become rapists.  Just saying.

Well, it is very sad.  I traveled there in 1984 and it was quite different.  People were just as poor then, and unemployed, but they weren't killing off their girl fetuses and raping and blaming it on TV.  I guess it was just a lack of opportunity back then     /s

Dubaibanker's picture


With all due respect, if you don't have real world Indian experience and don't know about the caste and poverty and how they influence things on the ground in India then I think yes, the concept I describe must be alien to you.

I dont think you or anyone you know is from a lower caste, dirt poor, illiterate, malnourished, kicked by their Govt, the local money lenders and the cops while having no food and no job! all at the same time.

Cause of rape, IMO, is due to frustration. If you did not know, more than 65% of India's population is in the 15-64 years age which is the baby boomers but they are also the most illiterate or with very poor skills.

You may research a bit more here:

In the villages, the country men do get away with rape because no one listens to the woman's complaints, so yeah they do get away with it. The clash happens in the urban centres where the illiterate think they will get away with it but they cant due to fast changing policitcal environment.

In the history of the world, things may have happened differently because the world population was just 1bn until mid 19th century. Therefore, the dynamics were very different and most countries were trying to get away from colonialism by Spanish, Portuguese, Mughals, Persians or the Brits. Men folk had no time for rape nor were women so liberalised until the 1950's starting from good ol' USA.

India has become very different in just the last 2 decades. 20 years ago, there were almost no TV channels, now there are hundreds. 20 years ago, Indian cities were less populated and definitely much less polluted. Now they are right at the worst in the world. 20 years ago corruption was barely noticed, but today you cannot do anything without being corrup on both ends. Things are vastly different today and the stress between haves and have nots has risen to an unsustainable level.

India has barely created a few dozen billionaires, and a few thousand, about 200k to 300k millionaires in the last 50 years, even if we include the black money millionaires, they will in all not be more than 1m at the very max. While India's population is reaching 1.25bn today. 

India's population was barely 934m in 1994, today it stands above 1.25bn.

All the people being born today except in those one million homes are dirt poor, malnourished, from lower caste, with no healthcare and lately getting unemployed. That's 1.249mn people.

65% of them are young and are you telling me that young males of India do not have raging hormones? After being unemployed and getting poorer, they cannot handle the social stress very well when there is no Govt support and they get frustrated and lead to various crimes not just rapes, like murders, robberies, petty theft which is all on the rise across India.

In fact, partly due to social taboos, outsourcing has left India. For example, the trend was when outsourcing started about 15 years ago, young girls and boys right out of University used to work for tele call centers on good salaries. Salaries kept rising and disposable income was plenty. However, being in far flung areas and due to work timings which had to be on US time zones, girls had to work over night. Rapes started in small numbers by drivers who used to drop employees home and then promiscuity started between all these 25 year olds at work place working odd hours in the night. Now, since the last 5 years, girls dont want to work because the parents of the boys dont want any boy to marry a girl who works overnight because of rumuors of promiscuity so most girls dont want to work in call centers any more. Partly this and partly due to increased costs and labour laws, call centers have started shutting down in India and are departing from India and have shifted hundreds of Indians to Manila.

1984, when you travelled, to India, India was a paradise with just 764mn in population. They have almost doubled since then.

Trust me, India' days are numbered both economically and also in terms of any sustained growth or crime etc. Rape is just one symptom. India's symptoms are plenty from banks falling apart to businesses bankrupting and all sorts of crime when their population is rising and GDP is decling and inflation is insane and jobs are reducing by the millions, that also at a time when India needs to create jobs!

All this calls for several crimes to be born.

Rape can not simply be classified as described in the western textbooks especially when it comes to India. Ask any police man in India or any villager where India lives on what they say about rape. They will tell you it happens all the time and whats the big deal!

One of India's leading politicains who has previously been a Chief Minister of a state and whose son runs one of the most important states in India had this to say few months ago:

Another minister from the currently ruling party from another state said almost the same thing last month:

Please do read both articles.

In most of India, oustide the metros where not even 30% of India lives, local village headman has the authority to order for rape of a girl jfrom the defendant's family ust because her brother teased another girl. This happened last week.

India is very large, very diverse and very complicated. Please don't even try to understand it. There is a reason why India's GDP is declining since 2012 despite its fast growing population.

kareninca's picture

I have read that the Indian government is actively encouraging people to return to their villages, by providing guaranteed government-paid jobs in the rural areas and other goodies that the government can't actually afford to be providing.  It does not sound sustainable.  Once those government jobs go away, the rural areas will be a disaster again.  Anyway, they've killed off a huge portion of their baby girls, so they are a disaster in any case.

AbbeBrel's picture

Thank you both for the updates on the local trends...