Case 5.1: Microsoft CorporationCommunicating Layoffs to 18,000 Employees
The Announcement
On Thursday, July 17, 2014, more than 150 Microsoft employees gathered in a corporate headquarters conference room. Rumors of layoffs had been circulating for weeks, so it caught few by surprise when senior managers informed them that Microsoft would be moving in a new direction, thus making their roles either redundant or unnecessary. The company’s human resources managers described severance packages and explained that key cards would cease to work in a few days. Employees were instructed to clean out their desks as soon as possible.1, 2
On that same day, Stephen Elop, former CEO of the recently acquired Nokia division ...
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