Microsoft to axe 18,000 jobs

[SEATTLE] Microsoft Corp said yesterday that it will slash up to 18,000 jobs, or 14 per cent of its workforce, this year as it trims its newly acquired Nokia phone business and tries to transform into a cloud-computing and mobile-friendly software company.

The larger-than-expected cuts are the deepest in the company's 39-year history and come five months into the tenure of chief executive Satya Nadella, who outlined plans for a "leaner" business in a public memo to employees last week.

"We will simplify the way we work to drive greater accountability, become more agile and move faster," he wrote to employees in a memo made public early yesterday. "We plan to have fewer layers of management, both top down and sideways, to accelerate the flow of information and decision-making."