Microsoft Cuts 7,800 Jobs From Phone Hardware Division

By Tim Maytom

Satya Nadella, CEO of Microsoft

Satya Nadella, CEO of Microsoft

Microsoft has announced 7,800 jobs will be cut, largely from its phone hardware business, as part of a restructuring that will also see the tech giant write down around $7.6bn (£4.9bn) related to its Nokia phone business.

The cuts may well mark a death knell for the company’s Windows Phone business, as it increasingly shifts from hardware to software and cloud computing. This is the second round of cuts since Satya Nadella took over as CEO in February 2014, and both have focused on the company’s mobile device units.

Microsoft purchased Nokia in April 2014, a deal that saw the company pay out $7.2bn for a struggling handset business with only a three per cent market share. Former Nokia boss Stephen Elop announced that he would be leaving the company last month.

In an open letter to employees, Nadella explained that Microsoft will no longer focus on building a “standalone phone business”, and will instead concentrate on supporting Windows mobile software, and releasing occasional flagship models.

“I don’t take changes in plans like these lightly, given that they affect the lives of people who have made an impact at Microsoft,” said Nadella, addressing the job losses. …read more

Source:: Mobile App News