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Microsoft slashes 7,800 jobs across phone business

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Microsoft slashes 7,800 jobs across phone business

Microsoft CEO Satya Nadella has confirmed the company will lay off 7,800 staff around the globe, primarily those working on the company’s phones.

In a letter to staff about a series of plans to restructure Microsoft’s phone business, Nadella wrote: “We anticipate that these changes, in addition to other headcount alignment changes, will result in the reduction of up to 7,800 positions globally, primarily in our phone business.

"We expect that the reductions will take place over the next several months.”

Nadella said the company was facing a $7.6 billion ‘impairment charge’ relating to its purchase of Nokia’s devices and services business last year. It will also need to fork out up to $850 million on restructuring.

He added: “I am committed to our first-party devices including phones. However, we need to focus our phone efforts in the near term while driving reinvention.

“We are moving 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.”

The announcement points towards more tough times for Windows Phone. The platform has failed to compete against Apple’s iOS and Google’s Android, never taking more than a single figure share of global smartphone usage.

Source:

Microsoft

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