Microsoft To 'Streamline' Smartphone Business, Axes 1850 Jobs

Shut the Windows This is what you will see when asked to upgrade

Microsoft CEO Satya Nadella said that the company will now focus its phone efforts where it can differentiate itself from competitors, namely with consumers and enterprises that value security, manageability and the company's Continuum capability that turns a smartphone running Windows 10 into a PC. The company said it would continue to support Windows 10 Mobile and any Lumia smartphones running the operating system.

Nokia previous year had cut down 7,800 jobs and write downs $7.5 billion, is still struggling to survive in the market even after the acquisition.

Microsoft's latest announcement comes a week after the company revealed it would be selling its entry-level phone assets to Taiwan-based Foxconn Technology Group and the newly-formed HMD Global Oy, led by former Nokia and Microsoft Mobile employee Arto Nummela, for $350 million.

The restructuring and job cuts mark another way of Microsoft undoing a portion of its 2014 acquisition of Nokia's phone business and refocusing its efforts in the mobile sphere. Continue to stay firm on pursuing innovations across Windows devices.

Reuters was told by a Finnish union representative that the cuts would essentially put an end to Microsoft's development of new phones.

In July 2015, Microsoft announced a $7.6bn adjustment on its Phone hardware business just 15 months after buying Nokia's mobile phone business for $7.2bn. The company said the cut affect another 500 jobs globally, but it did specify region. "But given the current circumstances, we believe that Microsoft is now, at last, following the path that is most likely to lead it to success in the market for its smartphones", Delaney concluded.

Microsoft is continuing to scale back its smartphone business, announcing plans to lay off up to 1,850 employees, as the tech giant has failed to gain traction against Apple and Google Android devices.

The activities linked with Wednesday's announcement are anticipated to be significantly complete by the end of the calendar year and fully completed by July 2017, the end of Microsoft's next fiscal year.

The decision means that Microsoft is scrapping what was left in Finland of Nokia's former glory as the world's former top mobile phone maker.

Source: Microsoft To 'Streamline' Smartphone Business, Axes 1850 Jobs