Tag

Those “costs” have finally caught up to Microsoft and the new CEO, Satya Nadella, when he proclaimed a total rethinking of their phone strategy – he announced that they would be writing off $7.6 billion…nearly the entire amount of the Nokia acquisition, as...

The result: an impairment charge of about $7.6 billion related to assets connected to its Nokia Devices and Services business acquisition. Daniel Ives, an analyst at FBR Capital Markets, said, “It’s a headache that Nadella inherited”.

Microsoft said it would narrow its focus to three types of customers: 1) business users who want strong management, security and productivity apps; 2) buyers looking for cheap phones; and, 3) users heavily invested in Microsoft’s other Windows-based products.

Last July, the company said it would slash 18,000 positions in its biggest-ever layoff, most coming from the Nokia acquisition; that included staffers at Xbox Entertainment Studios, which Microsoft shuttered two years after its formation.

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. He added that the company intends to...

The San Diego layoff will see the departure of 28 senior software development engineers, 18 senior program managers and seven senior hardware engineers, based on a state filing submitted by Microsoft.

The impairment charge will roughly be $7.6 billion in relation to the assets that are associated with all the acquisitions done with Nokia Devices and Service (NDS).

The cuts come in addition to 18,000 layoffs announced a year ago: Those cuts included around half of the 25,000 staff who joined Microsoft from Nokia.

Creative Strategies analyst, Ben Bajarin said narrowing the focus on mobile will allow the company to devote its resources to its strongest areas like software and cloud development, noting that the company has served mobile phone customers ranging from low end to premium tier....

Most of the job cuts will be in the phone hardware business, underscoring the company’s shift in focus to software and cloud from hardware.

In a memo to staff, the company’s chief executive Satya Nadella said: “I am committed to our first-party devices including phones”. “In the near term, we’ll run a more effective and focused phone portfolio business while retaining capability for...

Microsoft said last July it would slash up to 18,000 jobs.

The company is in the midst of a broader restructuring announced past year that includes cutting 18,000 jobs.

The restructuring is expected to cost another Dollars 750-850 million. Moreover, CEO Satya Nadella said that Microsoft’s smartphone portfolio would be streamlined, from now on including only three types of devices: value phones, business phones, and flagships. It said it...