With 1,850 Job Cuts, Microsoft Kills Off Whats Left of Nokia

Microsoft-Level39.jpgWhen Microsoft sold off its feature phone business and the rights to the Nokia brand last week, it wasnt clear what parts of the business Microsoft had acquired in 2013 were still operational. Today seems to have brought a fairly definitive answer, as Microsoft has announced 1,850 jobs are being cut in its smartphone hardware business, mostly focused in Finland – seemingly the last remnants of Nokia.

The cuts will cost Microsoft $950m (£648m) in impairment and restructuring charges, around $200m of which will go on staffs severance payments. Its worth noting that this is actually a larger amount than the money brought in by the sale of the feature phone business, for which FIH Mobile paid $350m.

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

1,350 jobs will be cut at the Microsoft Mobile business in Finland, with 500 more roles being dropped across the rest of the globe. Microsoft clarifies that these cuts will not affect its Finnish sales subsidiary.

Microsoft says more information on this move will be released with its Q4 2016 earnings in July.