In a letter today Satya Nadella, Microsoft's CEO, announced today that the company would be eliminating 18,000 positions by next year.

"The first step to building the right organization for our ambitions is to realign our workforce. " Nadella states in the letter. "With this in mind, we will begin to reduce the size of our overall workforce by up to 18,000 jobs in the next year."

Nadella goes on to state that Nokia Devices and Services will take the brunt for the hit and will account for about 12,500 of the positions terminated.

"We are moving now to start reducing the first 13,000 positions, and the vast majority of employees whose jobs will be eliminated will be notified over the next six months. Nadella continues. " It’s important to note that while we are eliminating roles in some areas, we are adding roles in certain other strategic areas. My promise to you is that we will go through this process in the most thoughtful and transparent way possible. We will offer severance to all employees impacted by these changes, as well as job transition help in many locations, and everyone can expect to be treated with the respect they deserve for their contributions to this company."

Nadella states that the reason for the reduction is one part Nokia Devices and Services integration into Microsoft.

"We will realize the synergies to which we committed when we announced the acquisition last September."