Microsoft completed its $7.2 billion USD acquisition of Nokia’s device’s and services division in 2014.
The purchase aimed to bring life to Windows Phone but the strategy faltered, the company slashed jobs, and its market share fell below one percent. Microsoft has now announced further cuts to its workforce and a plan to streamline its smartphone hardware business.
Microsoft will shed 1,850 jobs and take a restructuring charge of approximately $950 million USD. There is no indication that the loss of jobs impact any Canadians. The 1,350 jobs are located at Microsoft’s Mobile Oy in Finland with the remaining 500 scattered around the world.
“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,” said Satya Nadella, CEO of Microsoft in a statement sent to MobileSyrup. “We will continue to innovate across devices and on our cloud services across all mobile platforms.”
Last week, Microsoft announced plans to sell its feature phone division to Foxconn subsidiary FIH Mobile for $350 million USD. The transaction is expected to close later this year.
Microsoft recently announced its Q3 results where the company reported sales of 2.3 million Windows Phone devices.
Microsoft isn’t abandoning its smartphone strategy just yet. “Microsoft will continue to develop Windows 10 Mobile and support Lumia phones such as the Lumia 650, Lumia 950 and Lumia 950 XL, and phones from OEM partners like Acer, Alcatel, HP, Trinity and VAIO,” continued the company in a recent statement.
Following the trend of its tablets, rumours suggest that a flagship Windows Phone called the Surface Phone could be launching early next year.