14 DAY TRIAL // Microsoft continues its restructuring plans following the acquisition of Nokia’s Devices and Services unit in 2014, and the company confirms that its Finnish mobile phone division will be shut down.
A report by Reuters reveals that the software giant will also go further with its job cuts, with approximately 1,350 people to be laid off as part of the restructuring process. The latest round of layoffs was announced in May this year and involved 1,850 workers from its mobile unit, with 1,350 based in Finland, while the remaining 500 employees were based worldwide.
Microsoft’s decision to cut more jobs following the takeover of Nokia’s Devices and Services business was received with criticism by Finnish authorities, with the government itself criticizing the company for breaking its promise of keeping the company alive and avoiding shutting down plants in the country.
Just one Windows 10 Mobile device?
CEO Satya Nadella, however, explained that such restructuring measures were absolutely needed and pointed out that, by laying off more workers, the company can continue its mobile plans. Windows 10 Mobile as a platform will continue to be alive, but the closure of key facilities in Finland shows that Microsoft could indeed scale back production of new phones and reduce the number of devices it owns to just a few.
"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 explains. "We will continue to innovate across devices and on our cloud services across all mobile platforms."
People with knowledge of the matter have said that Microsoft is very likely to continue its mobile plans with just one model, namely the Surface Phone, putting partners in charge of the rest of the ecosystem and allowing them to expand the Windows 10 Mobile with a wide variety of devices, including low-end and mid-range models.
Today’s news, however, is very unlikely to be received well by Finland, but Microsoft seems to be very keen on completing its restructuring plan.