UPDATED : Microsoft has just confirmed that there will be major downsizing in the mobile division.
The 7,800 jobs disappear, primarily from the department that makes Windows Phone hardware.
In an announcement makes Microsoft is clear that they take an impairment charge of $ 7.6 billion related to the acquisition of Nokia’s mobile division.
It is quite startling.
The book loss is greater than what Microsoft paid for what was once Finland’s technology adventure, which they bought for $ 7.2 billion.
Besides this, Microsoft will charge accounts with further between 750 to 850 million dollars in so-called restruktureringskonstader, or on good Norwegian severance packages and appendix to those who are dismissed.
– We are moving away from a strategy to develop a single mobile business, to develop and create a vibrant Windows ecosystem including our own family of devices. In the short term we will have a more efficient and focused mobile portfolio, while we are to preserve the ability to drive innovation in mobility in the long term, says CEO Satya Nadella in the announcement.
It is said also that:
“based on the new plans, so the prospects for Phone Hardware segment below what we originally expected.”
What this means for Windows Phone platform seems unclear. Microsoft has a very limited extent managed to get other mobile device manufacturers to deploy operating theirs.
It Nadella confirm is that Microsoft will continue to develop their own mobile phones, but that they henceforth will focus on three segments: business users, affordable units, as well as flagship. It sounds like the future will be far fewer Lumia devices as a result, writes The Verge.
(The rest of this article is from earlier today:)
Microsoft is planning new harsh cuts in staff. An announcement is expected today, writes New York Times.
These job cuts will be in addition to the 18,000 employees, who last July was designated as superfluous.
Background: 18.000 lose their job in Microsoft
Lumia and hardware
Hardest hit was last Nokia’s old cell division. Of the 25,000 employees, Microsoft took after the acquisition for $ 7.2 billion, about half or 12,500 lost their jobs.
The cuts now are also expected to affected employees who work with hardware, including Lumia- department store smart phones, as well as other parts of Microsoft, according to the newspaper.
Microsoft had globally more than 118,000 employees at the end of March.
In the meantime, messages about new cuts not confirmed by the company. Spokesman Frank Shaw did not want to comment on the opposite New York Times.
If unsuccessful on mobile
At the mobile investment goes bad, however, there is no doubt. In the previous quarter warned Microsoft market that they may have to write down the values of Nokia acquisition.
In the autumn it is five years since Windows Phone 7 was launched. Neither the person or subsequent versions of the platform has given Microsoft the position the company wants.
The market share of Windows Phone is globally at 2.7 percent, according to figures from May 2015 presented by IDC. Android towers with its 78.0 percent ahead of iOS with 18.3 percent.
Also fresh Norwegian statistics from very widespread applications provide a similar picture.
Difficult decisions
CEO Satya Nadella announced just two weeks ago, in a much publicized internal memo sent to all employees, the company now will have to make some difficult decisions.
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A few days earlier it was announced that Stephen Elop days in Microsoft are numbered. The former Nokia CEO led Microsoft’s division for hardware devices.
This whole division was in a recent reorganization merged with operating division, which has regained its old name Windows division, under the leadership of Terry Myerson .
What all this means, especially for the IT giant’s hardware and mobile efforts forward, is less clear.
Microsoft has only recently also sold parts of the map service Bing Maps to Uber and largely opted to close down the company’s advertising business.
This coincides with the Microsoft prepares its main launch on long, namely Windows 10 platform that will roll out in stages starting on 29 July. Read: How will Windows 10 rolled out.
Microsoft should present financial statements for its fourth quarter and fiscal year 2015 as a whole on Tuesday 21 July.
Read also: – Therefore, has not Windows Phone success
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