Microsoft after Bill Gates and Steve Ballmer. Satya Nadella

Microsoft is making a history again, it's cutting up 18,000 jobs. This is the highest cut in the company's thirty nine years of history. Most of the cuts will be in a recently bought unit, Nokia. It is estimated that around 12,500 jobs will be cut for the unit. This is being announced with 18 months of closing acquisition. Microsoft pledged to cut $600 million per year in costs.

The firm was expected previously to reduce 6,000 initially and while the actual cut are being announced, it became more sever,18,000 jobs. The firm has 127,000 employees world wide.

While it's reducing the number of employees it's not yet specifying locations yet.

The company  is also changing it's core business focus. The company is a software giant and it's still is. But, new CEO is offering something that might be questioning the trust of the investors. In February Microsoft appointed new CEO Satya Nadella who wants the firm to shift it's focus to online services, apps and devices away from software.
The firm is focusing on efficiency by reducing the chain of command and having fewer layers of management. IBM was weak at to reduce it while competing with the firm during the era of technological warfare.

He wore in an announcement,"Making these decisions to change are difficult, but necessary."

The firm is going to complete the re-size by the end of June next year.  It said the affected staff would be notified over  the next six months.

In total it said the cuts, including severance pay, would cost it between $1.1bn to $1.6bn (£643m to £935m) over the next year. Though it might seem to be costly for the company to cut job this will put the company in more favorable situation in coming years. The company will find itself in position where salary to employee and other expenses are much less than at present.

Analyst are still hopeful about the company's ability to be successful in online world. Satya Nadella is expected to put forward massive changes in the company.

Using it's $7.2 billion acquisition and all other resources, Microsoft is working to be a leading company in mobile devices and cloud based services. Satya Nadella is willing to put productivity and innovation as the focus of the company. It's seems the firm will be working in many innovative ideas to get what's useful for people. It's now focusing on Skype and Cortana.

Mr Nadella recreated image of the firm as "the productivity and platform company for the mobile-first and cloud-first world." The company may become leading one, it's time which will show us the result but for now there are people who will have to bear the impact. The cuts are expected to helping Microsoft in the competition with tech giants like Google and Apple.

This has impact on the stock price of the firm. Recently after the news, the stocks were up by 2%. While the world market is being hit by geopolitical unrest, the firms stocks are in increasing trend.

The firm is working to combine three operating systems into one single operating system. Nadella said "this means one operating system that covers all screen sizes." While windows is popular for making versions of the operating system, it's now a bold step for the firm.

Nadella is up with one team and a common architecture to combine Windows, Windows Phone and Xbox.
This could be one of the best step taken by the company to provide universal apps.


Here the analysis of the stock in Nasdaq.

Microsoft is making a history again, it's cutting up 18,000 jobs.This has impact on the stock price of the firm. Recently after the news, the stocks were up by 2%