Microsoft to cut 7,800 jobs at mobile phone business

Nieuws Algemeen Wereld 8 JUL 2015
Microsoft to cut 7,800 jobs at mobile phone business
Microsoft has confirmed plans to cut up to 7,800 jobs, mainly at its mobile phone business. In addition, the company will take an impairment charge of USD 7.6 billion to write down the value of the phone business acquired from Nokia last year. The restructuring is expected to cost another USD 750-850 million. 

Microsoft CEO Satya Nadella said in an email to staff that the restructuring is aimed at better integrating the phone business in the Windows ecosystem, rather than a standalone device operation. "In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility," he said, suggesting the company will scale back further the range of phones available. 

Microsoft said most of the restructuring should be completed by the end of the calendar year and the operation fully completed by the end of the company’s fiscal year. This is the second major round of job cuts at Microsoft since it acquired the Nokia business. In July last year, the company announced the elimination of in total 18,000 positions. When the acquisition was completed in April 2014, around 25,000 Nokia employees transferred to Microsoft. At the end of March, Microsoft had more than 118,000 employees worldwide. 

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