Microsoft to Cut 1,850 Workers in the Smartphone Business

Posted by at 11:28 am on May 25, 2016

Microsoft-New-LogoMicrosoft today said it plans to further streamline its smartphone business, an action that includes job cuts and restructuring charges.

The company plans to cut 1,350 jobs from its facilities in Finland, as well as another 500 jobs globally. The company expects to take a charge of about $950 million, of which $200 million will be used for severance packages.

“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, Microsoft’s CEO. “We will continue to innovate across devices and on our cloud services across all mobile platforms.”

Microsoft says it expects to complete most job cuts by the end of this year and all cuts by July 2017. Sales of Windows 10 Mobile phones began in late 2015, but the platform has lost more ground since then, accounting for just 1% of smartphone sales during the first quarter, according to Gartner.

Microsoft recently sold its feature phone business to a Foxconn subsidiary, and Nokia recently gave that same subsidiary the rights to use its brand on mobile devices. This paves the way for Nokia to make a return, of sorts, to the mobile phone business.

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