Microsoft Cuts 7,800 Jobs From Phone Hardware Division

Satya Nadella, CEO of Microsoft
Satya Nadella, CEO of Microsoft

Microsoft has announced 7,800 jobs will be cut, largely from its phone hardware business, as part of a restructuring that will also see the tech giant write down around $7.6bn (£4.9bn) related to its Nokia phone business.

The cuts may well mark a death knell for the companys Windows Phone business, as it increasingly shifts from hardware to software and cloud computing. This is the second round of cuts since Satya Nadella took over as CEO in February 2014, and both have focused on the companys mobile device units.

Microsoft purchased Nokia in April 2014, a deal that saw the company pay out $7.2bn for a struggling handset business with only a three per cent market share. Former Nokia boss Stephen Elop announced that he would be leaving the company last month.

In an open letter to employees, Nadella explained that Microsoft will no longer focus on building a “standalone phone business”, and will instead concentrate on supporting Windows mobile software, and releasing occasional flagship models.

“I dont take changes in plans like these lightly, given that they affect the lives of people who have made an impact at Microsoft,” said Nadella, addressing the job losses. “We are deeply committed to helping our team members through these transitions.

“In the near term, we will run a more effective phone portfolio, with better products and speed to market given the recently formed Windows and Devices Group. In the longer term, Microsoft devices will spark innovation, create new categories and generate opportunity for the Windows ecosystem more broadly.”