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Microsoft is sacking 7,800 employees to “restructure” smartphone business

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Satya Nadella
Microsoft CEO Satya Nadella

Microsoft has announced a huge restructuring of its mobile phone business, which will result in thousands of its staff being laid off.

The company is also writing off $7.6 billion related to “the acquisition of the Nokia Devices and Services” business, a deal that was completed only last year.

The news comes just weeks after the announcement that former Nokia CEO Stephen Elop would be leaving Microsoft and his role as Executive VP of Devices & Services at the company.

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,” explains Microsoft CEO Satya Nadella in an email sent to employees today.

He continues: “In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”

Related: Best Android Smartphones 2015

Nadella doesn’t detail what he means by a “more effective and focus phone portfolio”, but it’s likely we’ll see a cut back to the number of Lumia phones releasing in the future.

It’s already been widely rumoured that Microsoft is working on two high-end smartphones – codenamed Cityman and Talkman respectively.

The handsets will likely launch alongside, or following, Microsoft’s Windows 10 for Mobile debut, which is scheduled for later this year.

The global redundancy of 7,800 employees is due to be “substantially complete” by the end of the calendar year, and “fully completed” by the end of Microsoft’s fiscal year.

It’s not all grim at Microsoft HQ however; the Microsoft Surface 3 is pretty great, and we explain why in the following video:

Prem Desai

July 8, 2015, 4:59 pm

I always felt the move to buy Nokia was a knee jerk reaction.

This wouldn't have been an easy decision, but it need to be done to remove all the excess baggage and start anew.

I wish them well.

LeeTronix

July 8, 2015, 6:51 pm

I wish the sacked hard working and inventive good people all the best in their future.

Joycey

July 9, 2015, 10:04 am

I can only see this as a positive development as at the end of the day, Apple develop and release 1 phone a year and it hasn't hurt them at all, considering they appear to be the only high end phone company actually making money out of phones.

rene

July 9, 2015, 11:47 am

terribly unethical step: paying US$7.6b just to sack 7800 people out of their job....
we'll see if they get away with it.....
I bet we'll see the old nokia re-invent itself...as the BRIC device maker of choice and drive the long-term reinvention of mobility there.....using Android.

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