These jobs-cuts will be in addition to the 18,000 jobs that Microsoft planned to cut one year back.
Microsoft Corporation (NASDAQ:MSFT) said that it plans to restructure its mobile device hardware business to place more focus on resource alignment.
According to The Telegraph, the recent job cut from Microsoft’s hardware division means that the company is gearing towards a future focused mainly on selling software.
While Microsoft will not stop making smartphones but it would no longer focus on the growth of that business, instead emphasizing the expansion of the broad “ecosystem” of products, including mobile phones that run its Windows software.
Microsoft is also set to incur restructuring charges of about $750-$850 million, stating that it will provide more information about all charges in its July 21 announcement of fourth-quarter earnings. Some 2,300 of the jobs will be made in Finland, where Nokia is headquartered. Dawson also believes that this announcement is part of a much larger strategic move for the company.
For the second year in a row, Microsoft is laying off thousands of its employees, mostly from the company’s Nokia phone unit. “We’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”, he said, describing the categories which could also be detailed as business phones, budget phones, and high-end phones.
For Microsoft, the last month or so has been monumental in affixing the cloud-first, mobile-first mantle to every aspect of its business and for shedding operations that didn’t fit with its new knitting.
Microsoft had about 118,000 employees worldwide at the end of March, according to its website, with about half in the US.
Among the problems that plagued Windows Phone was that few software developers were willing to devote time to building apps for the fledgling operating system, which has never been a serious competitor to the giant ecosystems built around Apple and Google-driven devices. Late last month, Mr Nadella sent a company-wide email to rally employees for the coming year. “Phones remain a critical component of the Microsoft device portfolio and an important piece of our mobility strategy, but a restructuring is in order”.
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