Microsoft lays off hundreds as it guts its phone business
Microsoft's Nokia experiment is overMicrosoft is signalling the end of its Nokia experiment today. After acquiring Nokia's phone business for $7.2 billion two years ago, Microsoft wrote off $7.6 billion last year and cut 7,800 jobs to refocus its phone efforts. Microsoft is now writing off an additional $950 million today as part of its failed Nokia acquisition, and the company plans to cut a further 1,850 jobs. Most of the layoffs will affect employees at Microsoft's Mobile division in Finland, with 1,350 job losses there and 500 globally. Around $200 million of the $950 million impairment charge is being used for severance payments.
These latest job cuts mean that the majority of former Nokia employees are no longer working at Microsoft. Microsoft plans to complete most of its job cuts by the end of the year. A small number of employees will remain in research and development roles, and Microsoft has a sales subsidiary in Finland that won't be affected by the reductions. Microsoft originally hired 25,000 Nokia employees as part of its acquisition. Microsoft's "streamlining" of its smartphone business comes just a week after the company announced it's selling its feature phone business to FIH Mobile, a subsidiary of Foxconn, for $350 million.
Most former Nokia employees are no longer working at Microsoft.
Just another example of a business venture where Microsoft arrived a day late and a dollar short. A big idea that may have looked great on the drawing board, but didn't anticipate the effects of reality.
Hopefully these people can get new jobs quickly.
Makes me sad. Microsoft didn't bring anything new to the board, and people were already happy with the phone OS they knew. So why bother upgrading? I have a Windows phone I love. I know it could be better though, but MS was just too slow with the whole thing, such as upgrades, apps, and features.
When it comes time for me to get a new phone, I will skip MS, unfortunately, and deal with the trouble of learning a new system.
Sadly I think it's the lack of apps that is killing it. Everything you see advertise is on both Android and Apple, never Microsoft.
New Microsoft email reveals shifting mobile strategy, claims Windows phone investment 'not at risk'
A new email sent out to partners adds additional context to yesterday's restructuring of Microsoft's smartphone business. Core markets, three areas of strength, and what it all means for the future of Windows phone.
Microsoft recently announced further changes to its smartphone strategy around Windows 10 Mobile with further layoffs centered around the Nokia Mobile acquisition. Now that Microsoft's retrenchment is in full swing many see this as the end of Microsoft's mobile ambitions, but a new internal email suggests otherwise.
Instead, security, management, and Continuum capabilities are the focus for Windows 10 on smaller screens. Even more interesting is the shift in markets with Microsoft investing in individual ones, but pulling back in others like India and Brazil.
Make no mistake about it Microsoft's smartphone strategy is drastically changing, but change does not mean the end either.
Regional changes
According to an internal memo from Microsoft sent to partners and obtained by Windows Central, Microsoft will concentrate on these "core markets" for its smartphone business: US, UK, France, Germany, Poland, Australia, and Western Europe (Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland)
Same here. It seems MS will get Win 10 Mobile sorted out and stable about 5 months AFTER the next great thing hits the mobile phone world.Makes me sad. Microsoft didn't bring anything new to the board, and people were already happy with the phone OS they knew. So why bother upgrading? I have a Windows phone I love. I know it could be better though, but MS was just too slow with the whole thing, such as upgrades, apps, and features.
When it comes time for me to get a new phone, I will skip MS, unfortunately, and deal with the trouble of learning a new system.
