Microsoft cuts mobile division and 7,800 jobs

Microsoft cuts mobile division and 7,800 jobs

Technology giant Microsoft will cut 7,800 jobs as it has decided it will no longer expand its own mobile division, despite its recent take-over of Nokia in 2013.

Focus on Windows

The restructuring plan is part of CEO Satya Nadella's new strategy, which is to focus more on Windows. "We are coming from a stand-alone smartphone brand strategy and heading towards a vibrant Windows ecosystem strategy", he said.

 

The company will also write off 7.6 billion dollars (7 billion euro) on assets connected to the old Nokia brand, which is about 80 % of the acquisition sum Microsoft paid to get its hands on the Finnish company about 18 months ago. It is not entirely sure whether Microsoft will also halt its Lumia smartphone production.

 

Initially, Microsoft hoped the acquisition would enable it to compete with Samsung and Apple in the smartphone market, but that idea never materialized. Former Nokia CEO, Stephen Elop, also left Microsoft in June.

 

Microsoft had already cut 18,000 jobs last year, shortly after Nadella was appointed CEO. Most of those cuts were also in its mobile division.

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