“Over the past few weeks, I’ve shared with you our mission, strategy, structure and culture”.
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“Our reinvention will be centred on creating mobility of experiences across the entire device family including phones”, Nadella wrote in an email to employees that sought to explain the latest cuts.
Up to 7,800 people will be laid off globally, the company announced Wednesday morning.
Last month we pointed out that Stephen Elop, the ex- top boss at Nokia was leaving Microsoft for a second time. It had 118,600 employees as of March 30, with about 60,000 of those workers in the US.
“The restructuring in the phone business is a signal that this business is not performing anywhere near as well as Microsoft had hoped, and that Microsoft needs to be much leaner and more focused than it has been”, said Jan Dawson, chief analyst at Jackdaw Research.
This news marks one of many restructures to occur under CEO Satya Nadella.
Despite spending around $7.2 billion to acquire Nokia’s phone business, Microsoft’s phone ambitions appear to be going nowhere fast.
Some analysts say the job cuts may mean the beginning of Microsoft’s exit from mobile.
That’s roughly 15 million more than Apple’s initial production run of its iPhone6 and iPhone 6 Plus devices previous year.
Microsoft has struggled to break into the mobile market, which is dominated by Apple and Google’s Android.
Microsoft has done several things in the past to hit the ground running, never has there been a coherent strategy for its mobile platform, until the emergence of Nadella.
Currently, Microsoft is planning two high-end Nokia Lumia devices for its newly launched product – Windows 10 Mobile software in this year.
Microsoft also confirmed that it is selling a part of its mapping unit to Uber, the multimillion dollar cab company, while Uber is expected to offer jobs to 100 Microsoft employees.
Microsoft is due to start rolling out Windows 10 later this month, introducing a new operating system that can be used to power not only personal computers but a range of mobile devices.
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Nokia Corporation (ADR) (NYSE:NOK)’s stock on 08 July traded at beginning with a price of $6.38 and when day-trade ended the stock finally decreased -3.22% to end at $6.32.
