The software company continues its global cost-cutting plan

Oct 5, 2015 08:24 GMT  ·  By

Microsoft goes on with its global cost-cutting plan after the acquisition of Finnish phone manufacturer Nokia and today announced that the biggest manufacturing plan in Brazil would soon be sold to a Flextronics.

Since the takeover of Nokia's Devices and Services division, Microsoft has been hard at work to get rid of unneeded assets in an attempt to reduce costs as much as possible, and closing plants is one of the difficult decisions that the company had to turn down in order to successfully bring this to an end.

After it decided to close a plant in Finland and cut thousands of jobs locally, Microsoft is now trying to get rid of a factory in Brazil, which according to reports coming from local media (via WMPU), will soon be sold to Flextronics.

Production will continue in Brazil

Given the fact that Flextronics is a device manufacturing company, Microsoft will continue its collaboration with them and won't stop production in Brazil, but instead sign a contract to let them build all Lumia devices and Xbox consoles locally.

“As part of the restructuring of the mobile devices business previously announced, Microsoft has been seeking ways to increase efficiency in operations,” a Microsoft spokesperson was quoted as saying.

“After a deep and thorough evaluation, and under the final regulatory approval, Microsoft has decided to sign a contract with our business partner Flextronics for the production of Xbox and smartphones, starting in January 2016. The goal is that Flextronics will keep a similar level of operations in Brazil.”

This is clearly good news for the local economy, as closing such a large plant would clearly be a massive hit because it would also involve cutting thousands of jobs. What's more, the local facility serves as a central manufacturing hub for Microsoft in South America, so it could help the company continue building and selling the upcoming overhauled Lumia lineup in the region.