News

Microsoft lays off 7,800 jobs, restructures phone business

News
July 13
by chris eilers

microsoft

In the year 2013, when Microsoft acquired Nokia, it let 18,000 employees quit their jobs. Recently, a bad news was announced by Satya Nadella – Microsoft‘s CEO. Microsoft lays off 7,800 jobs, especially in term of the company’s phone business. The job cuts amount is more than 6% of this company work force.

Some 2,300 of the 7,800 Microsoft lay offs announced in the memo will be in Finland, where Nokia is based.

“The loss of so many jobs is very sad for the whole society and for the individuals affected,” the government in Helsinki said, according to the BBC.

Besides, it writes off nearly all of the value of Nokia acquisition.  Microsoft would take approximately $7.6 billion accounting charge associated to the acquisition of Nokia Devices and Services. The company said it would also take a cash restructuring charge of $750 million to $850 million related to the layoffs.

microsoft

Mr. Nadella said that there will be a move “from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem that includes our first-party device family”. In the coming stage, Microsoft Windows and Devices will mostly focus on three customer segments :  businesses, value phone buyers, and Windows fans.

Hope that after releasing Windows 10, Microsoft can make the income value of Lumia smartphone running Windows Phone be more positive.

While cutting the losses regarded of Nokia, Mr.Nadella has expanded its Office applications for Android and iOS. Those have made a spotlight for its broader mobile busniess and created a hit with reviewers and users.