In May, Microsoft announced it would shed 1,850 jobs from its phone division and also take a restructuring charge of approximately $950 million USD. Now, according to a report in Reuters, Microsoft has found a new round of cuts to make.
Microsoft noted in its annual report that the company would reduce its employee count by a stunning 2,850 over the next twelve months, which brings the total number of job losses in the phone department to 4,700. Microsoft has 114,000 employees worldwide and this represents approximately 4 percent of its workforce.
There are no details if Canadian jobs are impacted but most are layoffs are said to be located in Finland, which is where Nokia is situated. Microsoft purchased Nokia in 2014 for $7.2 billion.
Microsoft recently announced its Q4 results and reported revenues of $22.6 billion and a net income of $5.48 billion. Unfortunately, Microsoft’s smartphone division dramatically dipped as its revenue decreased by a staggering 70 percent over the last year.
Microsoft is still committed to smartphones, the company has shifted its focus to become mobile first by releasing its apps on iOS and Android, while also investing in cloud and software services. In addition, Microsoft recently purchased LinkedIn for $26.2 billion in cash.