Microsoft CEO Satya Nadella has stated that the company needed to make some “tough choices” in areas that aren’t working.
Now, it’s announced that 7,800 jobs will be cut from the mobile division working on Windows Phone hardware.
Satya Nadella sent the following email to the staff –
“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 the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”
Nadella reiterated that Microsoft is “committed to our first-party devices including phones” but needs to “focus [its] phone efforts in the near term.”
The company will also write off $7.6 billion from the acquisition of Nokia.
It also said that “the future prospects for the Phone Hardware segment are below original expectations” due to the new plans.
This is huge with the true impact of the direction of the Microsoft phone business under question now. Will Microsoft just make one or two phones or a small handful or none at all. Or is the future an Android based phone with Microsoft services?
Source The Next Web