Microsoft slashes 7800 jobs, mostly in phones unit

Both the Nokia and aQuantive deals were engineered by ex- CEO Steve Ballmer, who sought to compete against younger, faster-growing tech companies by expanding beyond Microsoft’s original business of making software for desktop computers.

This happens to be the second round of work removes ever since Satya Nadella became the ceo in February 2014. He further added, “In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.” The latest thing that is being heard is that Microsoft will take a call on launching one or maximum two models each year in three different categories.

Most of the cuts at the USA technology giant will be in the phone division, and the company will write down the value of its phone business acquired from Nokia by about $7.6bn. Microsoft had about 120 000 employees at the end of March.

But Microsoft’s Windows Phone system has gained little traction against Apple’s iPhone and Google’s Android system.

Microsoft’s announcement to reduce the number of smartphones it makes yesterday was pretty vague, but we may now know exactly what the company has in mind.

Microsoft was widely expected to write off all or part of the $7.2 billion it paid for Nokia’s handset unit in 2014, a deal that left the company with a struggling business and only 3 percent of the smartphone market. Instead, it’s a sign of Microsoft cutting the fat, and becoming a more reactive, focused organisation.

Nadella said that Microsoft transferred some of its imagery acquisition operations to Uber and it will continue to source base mapping data and imagery from partners.

Microsoft axed 18,000 jobs from the unit last July – the deepest cuts in the company’s history.

“Microsoft also announced the reduction of up to 7,800 positions, primarily in the phone business”.

The company’s employees were told by Mr. Nadella that he was committed to their first-party devices, together with phones.

Microsoft’s future in mobile devices likely hinges on the software-maker’s ability to convince developers to create apps for the phone version of Windows 10, after its ill-fated Nokia acquisition helped trigger 7,800 layoffs.