14 DAY TRIAL // Just as rumored earlier today, Microsoft has announced a new round of layoffs that would see no less than 7,800 workers leaving the company, most of them part of the phone business.
Redmond says this is part of its plans to “restructure the company,” revealing that it’s also writing off $7.6 billion from the Nokia Devices and Services acquisition.
Microsoft’s CEO Satya Nadella has already warned that “tough choices are coming,” and today’s announcement is certainly one of these decisions, especially because the company fires thousands from its phone business. This job cut comes only months after Redmond fired a total of 18,000 people following the Nokia deal, but this time the focus is specifically on the phone division.
“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,” Nadella said in today’s announcement. “In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”
To complete by the end of the year
Microsoft says that the layoffs are expected to complete by the end of the year, but it’s not yet clear whether employees would once again leave in waves or not. Previously, Redmond let go several thousand employees in several waves.
The Phone Hardware unit will be severely hit by this new job cut, so it will be interesting to see if the development of Windows 10 Mobile will be impacted in any way. The new mobile operating system is scheduled to launch in late 2015, a few months after the PC sibling.
Stephen Elop, the former Nokia boss who rejoined Microsoft after the takeover was complete, has also left the company together with other high-profile executives.
Redmond says this is just part of a broader reorganization plan that included the selling of its display ad business to AOL and the map tech and talent transfer to Uber, but it’s not yet clear if any other moves are planned.