Microsoft will eliminate up to 7,800 jobs – as part of its plans to restructure phone hardware business acquired from Nokia.
The IT giant will also write off $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services (NDS) business in addition to a restructuring charge of approximately $750 million to $850 million.
Earlier, Microsoft announced plans to transfer its imagery acquisition operations to Uber, and sell Microsoft’s display advertising business to AOL.
Microsoft 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.”
What will happen to Nokia phone biz?
Microsoft is moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem that includes first-party device family of Lumia.
In the near term, Microsoft will run a more effective phone portfolio, with better products and speed to market given the recently formed Windows and Devices Group.
Microsoft plans to narrow focus to three customer segments where it can make contributions and where it can differentiate through the combination of hardware and software. It’ll bring business customers the best management, security and productivity experiences they need; value phone buyers the communications services they want; and Windows fans the flagship devices they’ll love.
Its reinvention will be centered on creating mobility of experiences across the entire device family including phones.