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Microsoft cuts 1,850 jobs to streamline smartphone business

By Cookie Monster - on 26 May 2016, 1:00am

Microsoft cuts 1,850 jobs to streamline smartphone business

 Image source: Game Usagi.

To stem further losses in its smartphone business, Microsoft announced that it will be laying off 1,850 jobs as part of its plans to streamline the smartphone hardware business. This will affect up to 1,350 jobs at Microsoft Mobile Oy in Finland and 500 additional jobs globally. The company will also allocate US$950 million for impairment and restructuring the business. 

"We are focusing our phone efforts where we have differentiation — with enterprises that value security, manageability and our Continuum capability, and consumers who value the same," said Satya Nadella, chief executive officer of Microsoft. "We will continue to innovate across devices and on our cloud services across all mobile platforms."

The announcement came one week after Microsoft sold its feature phone business to Foxconn for US$350 million. Last July, Microsoft also cut 7,800 jobs and took a US$7.6 billion writedown on Nokia.

Back then, the company shared that it would be focusing on value phones, business phones and flagship devices. With the feature phone business gone and Surface Phones only launching in April 2017, it is likely that Microsoft will see its presence in the consumer segment decline further in the next few quarters.

Source: PRNewswire via 9to5Mac

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