14 DAY TRIAL // Microsoft might be firing thousands from the phone hardware division, but this doesn’t necessarily mean that the company is ready to give up on Windows Phone and Lumia devices, as many have speculated in the last few months.
Instead, Redmond is very keen on going on with its mobile effort, obviously with a slightly different approach, but Windows Phone still has a future in the company’s product portfolio.
In an internal memo sent by Microsoft COO Kevin Tuner, the company explains that the sales and marketing teams will also be impacted by the new rounds of layoffs announced by CEO Satya Nadella yesterday, but no details have been provided.
More information on Windows Phone has, however, been provided, with emphasis on the fact that the mobile platform will live on and there’s no current plan to give up on it.
“We will also focus on the channels and markets that offer the best returns. This is a similar approach to the one we have taken with Surface, which has been very successful. Phones remain a critical component of the Microsoft device portfolio and an important piece of our mobility strategy, but a restructuring is in order,” Turner explains (emphasis is ours).
Layoffs
Turner has said that the marketing and sales divisions will also lose some employees, but while no specifics have been provided, only few layoffs are expected to take place in this area.
“We expect that both of these changes will result in difficult headcount reductions in the direct and supporting organizations. There may also be other reductions around the world as we further align our business for success in FY16. These transitions are difficult, and to employees who may be impacted by these plans, I would like to extend my sincere appreciation and thank you for your service and dedication to Microsoft,” he says.
Microsoft fired 18,000 people following the takeover of Nokia’s Devices and Service unit last year, and the company is now looking to finalize the restructuring process by firing more workers, and CEO Satya Nadella says that, by the end of the year, the “new Microsoft” reborn should be complete.