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Starting to Evolve Our Organization and Culture
July 17, 2014
From:SatyaNadella
To:AllEmployees
Date:July17,2014at5:00a.m.PT
Subject:StartingtoEvolveOurOrganizationandCulture
LastweekinmyemailtoyouIsynthesizedourstrategicdirectionasaproductivityandplatform
company.Havingaclearfocusisthestartofthejourney,nottheend.Themoredifficultstepsare
creatingtheorganizationandculturetobringourambitionstolife.TodayIllsharemoreonhow
weremovingforward.OnJuly22,duringourpublicearningscall,Illsharefurtherspecificson
wherewearefocusingourinnovationinvestments.
Thefirststeptobuildingtherightorganizationforourambitionsistorealignourworkforce.With
thisinmind,wewillbegintoreducethesizeofouroverallworkforcebyupto18,000jobsinthe
nextyear.Ofthattotal,ourworktowardsynergiesandstrategicalignmentonNokiaDevicesand
Servicesisexpectedtoaccountforabout12,500jobs,comprisingbothprofessionalandfactory
workers.Wearemovingnowtostartreducingthefirst13,000positions,andthevastmajorityof
employeeswhosejobswillbeeliminatedwillbenotifiedoverthenextsixmonths.Itsimportantto
notethatwhileweareeliminatingrolesinsomeareas,weareaddingrolesincertainother
strategicareas.Mypromisetoyouisthatwewillgothroughthisprocessinthemostthoughtful
andtransparentwaypossible.Wewillofferseverancetoallemployeesimpactedbythese
changes,aswellasjobtransitionhelpinmanylocations,andeveryonecanexpecttobetreated
withtherespecttheydeservefortheircontributionstothiscompany.
LatertodayyourSeniorLeadershipTeammemberwillsharemoreonwhattoexpectinyour
organization.Ourworkforcereductionsaremainlydrivenbytwooutcomes:worksimplificationas
wellasNokiaDevicesandServicesintegrationsynergiesandstrategicalignment.
First,wewillsimplifythewayweworktodrivegreateraccountability,becomemoreagileand
movefaster.Aspartofmodernizingourengineeringprocessestheexpectationswehavefrom
eachofourdisciplineswillchange.Inaddition,weplantohavefewerlayersofmanagement,both
topdownandsideways,toacceleratetheflowofinformationanddecisionmaking.Thisincludes
flatteningorganizationsandincreasingthespanofcontrolofpeoplemanagers.Inaddition,our
businessprocessesandsupportmodelswillbemoreleanandefficientwithgreatertrustbetween
teams.Theoverallresultofthesechangeswillbemoreproductive,impactfulteamsacross
Microsoft.ThesechangeswillaffectboththeMicrosoftworkforceandourvendorstaff.Each
organizationisstartingatdifferentpointsandmovingatdifferentpaces.
Second,weareworkingtointegratetheNokiaDevicesandServicesteamsintoMicrosoft.Wewill
realizethesynergiestowhichwecommittedwhenweannouncedtheacquisitionlastSeptember.
ThefirstpartyphoneportfoliowillaligntoMicrosoftsstrategicdirection.Towininthehigherprice
tiers,wewillfocusonbreakthroughinnovationthatexpressesandenlivensMicrosoftsdigital
workanddigitallifeexperiences.Inaddition,weplantoshiftselectNokiaXproductdesignsto
becomeLumiaproductsrunningWindows.Thisbuildsonoursuccessintheaffordable
smartphonespaceandalignswithourfocusonWindowsUniversalApps.
Makingthesedecisionstochangearedifficult,butnecessary.Iwanttoinviteyoutomymonthly
Q&Aeventtomorrow.Ihopeyoucanjoin,andIhopeyouwillaskanyquestionthatsonyour
mind.Thankyouforyoursupportaswestarttotakestepsforwardinevolvingourorganization
andculture.
Satya
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