Microsoft to focus on core businesses, cuts 7800 jobs
The 7,800 cuts announced Wednesday, which mainly come from smartphones, are in addition to those 18,000.
With regard to Microsoft’s strategy change, Nadella said: “In the near term, we will run a more effective phone portfolio, with better products and speed to market given the recently formed Windows and Devices Group”.
Microsoft will carry out one of its largest rounds of job cuts in a restructuring move that calls time on its ill-fated Nokia acquisition.
The Redmond-company will focus on creating a Windows ecosystem where all of its devices and third-party devices can interact seamlessly. In an announcement last month, Microsoft also revealed that it was selling off its online display advertising business to AOL.
According to sources, these job cuts are expected to affect those working in the hardware sector as well as those who are employed with the smartphone business.
The vendor also said it will take a $750 million to $850 million restructuring charge to reorganize its handset business.
Microsoft may be dramatically reducing its investment in smartphones, but that doesn’t mean developers should give up.
More bad news for Microsoft. Since he took charge, Mr. Nadella has raised the growth of apps and services for Apple’s iOS and Google’s Android devices, many of whom have been admired by the public. However, we need to focus our phone efforts in the near term while driving reinvention.
Last year, Microsoft cut down 18,000 positions from its 118,000-member work force around the world.
Microsoft on Wednesday announced that to cut 7,800 jobs along with a reorganization of its Windows Phone unit which has struggled in the mobile market.
Windows 10 for mobile devices is scheduled for a release late this year, although it will not receive a simultaneously launch alongside the desktop and tablet version of Windows 10.
In 2013, Microsoft announced its plan to buy the Nokia unit for some $7.2 billion, and it closed the deal in 2014, noting that some “adjustments” would push the cost slightly higher. The idea is to have a common interface and a common code base, allowing Microsoft and its customers to have something approaching a more seamless experience across the range of platforms. However, due to regulatory hurdles, the Nokia India plant, which employed 6,600, was excluded from the deal.
Microsoft said in a statement that it would “restructure the company’s phone hardware business to better focus and align resources”.