comscore Nadella undoes Ballmer's last mistake: Microsoft writes off $7.6 billion Nokia acquisition, cuts 7,800 jobs
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Nadella undoes Ballmer's last mistake: Microsoft writes off $7.6 billion Nokia acquisition, cuts 7,800 jobs

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In line with reports from earlier today, Microsoft has now announced another huge round of layoffs. The Redmond-based company has announced that 7,800 jobs will be cut, primarily from the company s mobile division. Also Read - Xbox Series X restock in India possible by early August, no news on Series S

Also Read - Xbox Game Pass: List of games coming to consoles in July, big games releasing next month

An official statement from Microsoft reads, Also Read - Top 5 Minecraft Mobile seeds to build a world and where to find them

Microsoft plans to restructure the company s phone hardware business to better focus and align resources. Microsoft also announced the reduction of up to 7,800 positions, primarily in the phone business. As a result, the company will record an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services (NDS) business in addition to a restructuring charge of approximately $750 million to $850 million.

In an email to his employees announcing the layoff, Nadella wrote,

We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family. In the near-term, we ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.

This announcement comes after Nadella had revealed that the company would have to make tough choices in the near future. Some of these choices included letting go of former Nokia head Stephen Elop, and combining the Windows and devices unit into a single group under Executive Vice President Terry Myerson. Furthermore, the company had to also sell its Bing Maps assets to Uber, and its display advertising business to AOL.

FROM EARLIER: Former Nokia boss Stephen Elop among 4 senior executives leaving Microsoft in a major organizational shakeup

In addition to letting Elop leave, Microsoft had also announced a huge round of layoff last year, which saw around 18,000 employees leave. Of this, the majority were Nokia employees who moved after the acquisition by Microsoft.

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  • Published Date: July 8, 2015 7:03 PM IST



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