The Herald Bulletin

Morning Update

Breaking News

July 17, 2014

Microsoft to cut up to 18,000 jobs over next year

REDMOND, Wash. — Microsoft is cutting up to 18,000 jobs, about 14 percent of its staff, over the next year as it works to cut down on management layers and integrate the Nokia devices business it bought in April.

The news sent Microsoft's stock up 3 percent in premarket trading.

Although the job cuts had been expected, the extent of them was a surprise. It's the boldest move by CEO Satya Nadella since he took the reins from Steve Ballmer in February. In a public email to employees Thursday, he said the changes were needed for the company to "become more agile and move faster."

Of the job cuts, about 12,500 professional and factory jobs will be cut. Microsoft expects charges of $1.1 billion to $1.6 billion over the next four quarters, which includes $750 million to $800 million for severance and related benefit costs.

FBR Capital Markets analyst Daniel Ives said the cuts were about double what Wall Street was expecting.

But he said they were necessary to streamline operations and clean up a bloated management structure.

"Microsoft needs to be a 'leaner and meaner' technology giant over the coming years in order to strike the right balance of growth and profitability around its cloud and mobile endeavors."

Microsoft has been shifting its focus from traditional PC software to cloud computing and cloud-based products like its Office 365 productivity software.

With its $7.3 billion acquisition of Nokia's handset business, Microsoft has been is seeking to meld its software and hardware business into a cohesive package, similar to rival Apple. In a letter to employees, Executive Vice President Stephen Elop said the company will drive sales of its Windows Phone by targeting the lower-price smartphone market with its Lumia devices. It also plans to develop more products for the higher-end smartphone segment.

In a blog post a week ago, Nadella hinted at the move, saying Microsoft had to "change and evolve" its culture for the "mobile-first and cloud-first world."

Nadella said Thursday that he would give more details when Redmond, Wash.-based Microsoft reports fiscal 2014 results on Tuesday.

Shares of Microsoft rose $1.35, or 3.1 percent, to $45.43 in premarket trading. The stock is up nearly 18 percent since the beginning of the year.

 

1
Text Only
Breaking News
  • Some US colleges calling students back from Israel

    Some U.S. colleges are pulling students from overseas study programs in Israel as the Gaza war rages, though the relative calm beyond the immediate battle areas is raising questions in some quarters about why they had to leave.

    August 21, 2014

  • Instant noodles: Friend or foe?

    Kim Min-koo has an easy reply to new American research that hits South Korea where it hurts — in the noodles. "There's no way any study is going to stop me from eating this," says Kim.

    August 21, 2014

  • Ohio diocese discourages ALS ice bucket challenge

    A Roman Catholic diocese in Ohio is discouraging its 113 schools from participating in the ice bucket challenge to benefit the ALS Association, saying the group's funding of embryonic stem cell research is "in direct conflict with Catholic teaching."

    August 21, 2014

  • Charter school to close after cheating revealed

    One of Indianapolis' oldest charter schools will close next month, after an investigation uncovered widespread cheating on its students' state standardized tests in 2013 and 2014.

    August 21, 2014

  • Severe thunderstorm watch until midnight

    The National Weather Service has issued a severe thunderstorm watch for portions of central Indiana, including Madison County.

    August 21, 2014

  • US judge strikes down Florida gay marriage ban

    A federal judge on Thursday declared Florida's ban on same-sex marriage unconstitutional, joining judges across the country who have sided with gay couples wishing to tie the knot.

    August 21, 2014

  • Man pleads guilty in fatal Purdue campus attack

    An Indiana man pleaded guilty Thursday to murder in the fatal shooting and stabbing of a fellow Purdue University student in January.

    August 21, 2014

  • Colts owner's trial on DWI charges postponed

    Indianapolis Colts owner Jim Irsay's trial on two misdemeanor charges stemming from a March traffic stop has been postponed for two months.

    August 21, 2014

  • US housing recovery appears to be back on track

    A fourth straight monthly increase in sales of existing homes provided the latest evidence Thursday that the U.S. housing market is rebounding from a weak start to the year.

    August 21, 2014

  • Stone Brewery not locating in Indiana

    Three Indiana communities, including Anderson, have been elimininated in their bids for Stone Brewing Co.’s East Coast facility.

    August 21, 2014

Featured Ads
More Resources from The Herald Bulletin
AP Video
Raw: Rescue Efforts Suspended at Japan Landslide Raw: Bodies of MH17 Victims Arrive in Malaysia Raw: Smaller Marches in Ferguson Marathon Suspect's Friend Pleads Guilty Attorney: Utah Eatery Had Other Chemical Burn Farm Resurgence Grows With Younger Crowd Microbrewery Chooses Special Can for Its Beer Ky. Firefighters Hurt in Ice Bucket Challenge Federal Investigation Will Look at Use of Force Community Deals With Michael Brown Aftermath US: We Do Not Pay Ransom to Terrorists Ferguson Teachers Training to Deal With Trauma Jon Hamm on the Unrest in Ferguson Tit for Tat? McDonald's Shuttered in Moscow Life on the Professional Video Game Circuit TX Gov Perry in Washington: 'Confident' in Case Hospital Releases Two Missionaries Who Had Ebola Ramen Health Risks: The Dark Side of the Noodle NYC Doctor-in-chief Seeks Community Approach Indonesian Police Fire Tear Gas at Protesters
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium
Front page
Poll

Generally speaking, how good are relations among people of different races in the Anderson area?

Very good
Good
OK
Bad
Very bad
     View Results