Microsoft cuts 7,800 jobs and writes US$7.6 billion off from Nokia deal
Microsoft has announced that it will be laying off up to 7,800 workers and that it will also be taking a US$7.6 billion write-down on Nokia.
Image source: Game Usagi.
Microsoft has just announced that as part of its restructuring efforts, it will be cutting up to 7,800 jobs, with most of the jobs coming from its phone business. Additionally, it is also taking a US$7.6 billion writedown on Nokia.
The move comes as Microsoft has failed to gain any significant marketshare in an industry dominated by Apple and Android.
In a memo to employees, Microsoft's CEO Satya Nadella said, "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."
According to reports, Microsoft remains committed to making phones, but will drastically cut back on its offerings and will concentrate instead on three key groups: value phones, business phones and flagship devices. Microsoft is reportedly looking to release only one or two models in each group ever year.
In addition to the job cuts and writedown, Microsoft also said that it will be recording a restructuring charge of around US$750 million to US$850 million.
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