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Microsoft laying off up to 1,850

Company will "streamline" smartphone hardware business and take a $950 million restructuring charge

Microsoft is scaling back further on smartphones, as the company today announced it would streamline its hardware business, resulting in layoffs for up to 1,850 employees. The company will also take an impairment and restructuring charge of $950 million, about $200 million of which will be made of severance payments to laid off workers.

"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," Microsoft CEO Satya Nadella said in announcing the move. "We will continue to innovate across devices and on our cloud services across all mobile platforms."

The move came a week after Microsoft sold off its feature phone business, unloading that business and roughly 4,500 jobs to FIH Mobile for $350 million.

These are the latest in a series of decisions lessening the company's position in mobile hardware in the wake of its ill-advised purchase of Nokia's phone business in 2013. That $7.2 billion acquisition was followed last year by a $7.6 billion impairment charge and a massive cutback in Microsoft's mobile business, with thousands of jobs lost and another $750 million to $850 million in restructuring charges.

Microsoft said it will provide more details on these changes in its fourth quarter earnings report in July.

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Latest comments (4)

Aleksi Ranta Category Management Project Manager A year ago
i think this has to go down as one of the most insane business deals in the mobile space to date. basically a complete write off and thousands of unemployed. I shoudlnt say this but i hope more people up top were laid off, other than just Elop. Nokia made huge mistakes of its own when the transition to smart phones came about but its nothing compared to this more than shady deal to sell Nokia to MS.
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Adam Campbell Game Production Manager, AzoomeeA year ago
nothing compared to this more than shady deal to sell Nokia to MS.
- Someone leaves Microsoft to take charge of Nokia.
- Suspiciously chooses to support Windows Phone exclusively.
- Sells Nokia back to Microsoft.
- Re-joins Microsoft.

That's just a conspiracy though :)
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Sandy Lobban Founder, Noise Me UpA year ago
They've got the patents. Walking away is the easy part.
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Aleksi Ranta Category Management Project Manager A year ago
And ""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,"

Those customers are few and far between now. Microsoft had years and years to build the windows phone platform, and it has just lost them money, jobs and credibility in the mobile space. I have a VERY hard time imagining what, if anything, they can bring out that will make me go back to being a windows user on my phone, especially as MS has bascially released every bit of their key software on Android and iOs.
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