His predecessor, former CEO Steve Ballmer, orchestrated the purchase of Nokia's struggling mobile phone business for €5.4 billion ($6 billion) in 2013.
It's the second shoe to drop.
What remains after that was the feature phone portion of the business, which was sold last week for $350 million.
Today, Microsoft announced plans to "streamline" the company's smartphone hardware business, which will affect up to 1850 jobs.
As per to the Microsoft, it said that it would cut off to 1,850 jobs, in a move that clearly puts the stamp of two year chief executive Satya Nadella on the USA company. Mr. Nadella also said that the spirit of innovation across all mobile and cloud platforms will not dry out with this step.
Microsoft has gone as far as stating that Nokia's sales division is protected, and that the job cuts are focused entirely on Microsoft's Mobile Oy. Other than this, it is worth noticing, that with this layoff, the company will be writing off $950 million from the business.
Kagan pointed out that even with a mobile market share of 4 percent or 5 percent, Microsoft was in better shape than many competitors who haven't been able to break even.
The acquisition of Nokia's mobile business will go down as one of the costlier missteps in Microsoft's history. And this morning, it's been revealed that more employees are to lose their jobs, most of which will go in Finland as Microsoft ends local phone design and manufacturing.
The restructuring will result in a one-time charge of $950 million which includes roughly $200 million for severance payments. Continue to update Lumia and partner phone devices while taking care of their customers and 3.
Despite lower prices for many of their smartphones, Nokia and Microsoft have never been able to make significant inroads in the consumer space against Apple and a bevy of Android-producing smartphone juggernauts.
Nadella has been trying to revitalize the company that was once known mainly for personal-computer software by focusing on Web-based services and productivity applications.
However, the bet has not paid off for Microsoft, which now has less than one per cent share of the global smartphone operating systems market.
Source: Microsoft signals end of Nokia experiment, cuts 1850 jobs
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