Microsoft to cut jobs
Last month it became known that Stephen Elop, former Nokia CEO, left Microsoft. With him left the company and mark Pins, which in 2013 was behind the Scroogled campaign, mocking the services from Google. And that’s not all. Jo Harlow, corporate Vice-President Phones Microsoft also released his post.
Then the head of Microsoft Sathya Nadella warned that they will face «difficult decisions in areas where things go wrong», and now we are witnessing the first serious action on the part of the company.
Today Redmond announced its intention to write off on losses of 7.6 billion associated with the acquisition of mobile business Nokia. In addition, the company will incur restructuring costs in the amount of $ 750-850 million and cut another 7800 of employees who are mainly engaged in the manufacture of mobile phones.
The announcement is the result of the efforts of Satya Nadella to transform and focus the company on several key areas. In the press release it says that future forecasts for business phones below initial expectations.
From Nadella’s letter to Microsoft employees, it becomes clear that the company is moving from the idea of creating an independent telephone business, and focused on the development and improvement of the Windows ecosystem, which will include and own device from Microsoft. In the near future the company will focus on more effective and targeted portfolio of smartphones.
It is not clear what this means, but Microsoft will probably limit the number of new Lumia smartphones at different price points and focus on high-end models. According to Nadella, the company will release the phone in three categories – budget, flagship and business-oriented with an appropriate combination of hardware and software.