Microsoft said it would sack 7,800 staff and write off a $7.6 billion in restructuring its flagging mobile business. Last year, it had cut 18,000 jobs.
Out of $7.6 billion on mobile business restructuring, the company has paid $7.3 billion to acquire Nokia’s phone business in April 2014. Being an ancient behemoth, it has failed to gain tractions still in mobile phones segment both from software and hardware side.
“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,” CEO Satya Nadella said in a statement.
Unlike his predecessor Steve Ballmer’s move to make own smartphones and tablets, Nadella has been insisting on the company’s core software business and related services and the job cuts are part of the strategy.
Besides reminding the employees of the need to “make some tough choices in areas where things are not working”, he has given away digital advertising business to AOL and sold the street-image mapping operation to Uber.
However, Nadella is keeping his hopes high on its latest operating system, Windows 10, that is scheduled to be officially released on July 29. The markets reacted slightly positive on the announcement of job cuts at 44 cents more today with the share of Microsoft trading at $44.71 in morning trading.