The victim of the latest round of Microsoft restructuring underway is the company’s esteemed Silicon Valley research group. Yes, the news is that Microsoft is shutting down its research facility that focuses on distributed computing. The Microsoft Research lab was in operation since 2001 and employed over 70 researchers. Another group – the Trustworthy Computing dedicated to offering safe, secure computing experience and leading the company’s cyber-security work will also be pulled down.
Microsoft Restructuring Plan
The decision comes on the heels of an announcement that Microsoft official made earlier in July soon after assuming the charge as Chief Executive Officer of the firm. Satya Nadella has been exploring ways of reshaping Microsoft’s organizational structure with “fewer layers of management, both top down and sideways, to accelerate the decision-making process.
As a part of it, a total of 18000 job cuts at different ranks were marked. The figure by far is the largest in Microsoft’s 39-year history, and 12,500 of them come from Microsoft’s $7.2 billion acquisition of Nokia. The figures of the latter are higher as the company aims to reduce its dependence on contract workforce.
The closure of the office headed by a distinguished engineer, Roy Levin is being perceived by Microsoft leaders as a necessary evil. That said, the company comes clear on the fact that it nurtures no plans of closing any of the research projects that are run out of the Silicon Valley lab nor it is shying away from its research commitments.
The company also assures its followers to go through the process of restructuring in the most thoughtful manner possible and offer severance to all the affected employees. Many of the ongoing research projects will be absorbed by Microsoft Research labs in Redmond; Cambridge, Mass.; and New York. The absorption means some positions will be eliminated. How many? It’s not clear for now.