Microsoft shrinks smartphone ambitions with mobile restructuring
Microsoft CEO Satya Nadella just unveiled the latest of the “tough choices” Microsoft is making to streamline its business, and it’s a doozy: the company is significantly cutting back its smartphone ambitions almost two years after announcing it would acquire Nokia’s Devices and Services business in an attempt to play a greater role in this market. In an email to employees, Nadella said that the company was moving away from being a phone manufacturer and towards creating a “vibrant Windows ecosystem” that includes a group of first-party devices. As a result, the company will be dismissing around 7,800 employees, with the majority of job cuts impacting people in Microsoft’s phone hardware business. The restructuring also included another aftershock from the Nokia acquisition: Microsoft will take a massive $7.6 billion write-down on the acquisition itself along with a restructuring charge of between $750 and $850 million.To read this article in full or to leave a comment, please click here