Microsoft announces massive job cuts in its phone hardware business

Microsoft Corp. announced plans to restructure the company’s phone hardware business, resulting in a reduction of up to 7,800 positions, primarily in the phone business. The company said this was to‘better focus and align resources’. Microsoft also announced that the company will record an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services (NDS) business in addition to a restructuring charge of approximately $750 million to $850 million.

The plans were outlined in an email from Microsoft CEO SatyaNadella to Microsoft employees.“We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family,” Nadella said. “In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”
From this announcement, it is not difficult to infer that the Nokia did just did not work out for Microsoft.  The actions associated with today’s announcement are expected to be substantially complete by the end of the calendar year and fully completed by the end of the company’s fiscal year, the press announcement said.