BrandArena: Microsoft to cut up to 7,800 Jobs, mostly in phone business

Wednesday 8 July 2015

Microsoft to cut up to 7,800 Jobs, mostly in phone business

In addition to its other headcount alignment changes, Microsoft has announced the reduction of up to 7,800 positions globally, primarily in its phone business.

According to a memo from Microsoft's chief executive officer, Satya Nadella to employees, Microsoft expects that the reductions will take place over the next several months.
Satya Nadella
"Today, we announced a fundamental restructuring of our phone business. As a result, the company will take an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services business in addition to a restructuring charge of approximately $750 million to $850 million", part of the email to employees by the CEO on Wednesday, July 8, reads.

He said the company will run a more effective phone portfolio, with better products and speed to market given the recently formed Windows and Devices Group.

On Advertising, Nadella stated that the Microsoft decision to sharpen its focus in advertising platform technology and concentrate on search, while partner with AOL and AppNexus for display. "Bing will now power search and search advertising across the AOL portfolio of sites, in addition to the partnerships we already have with Yahoo!, Amazon and Apple", he added.

In 2014, Microsoft bought Nokia's struggling smartphone business for $7.9 billion. Since then, Microsoft has tried restructuring it. 

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