Microsoft to Lay Off 7,800 Employees 'Primarily' in its Phone Business

micro-soft-storyIn a letter to Microsoft employees sent out this morning, company CEO Satya Nadella confirmed that over the next few months Microsoft will undergo a massive restructuring mainly focused on its phone business and which will see the loss of "up to 7,800 positions globally."

In addition, the company will take a $7.6 billion impairment charge and an estimated restructuring cost of $750 million to $850 million as Microsoft attempts to rebuild its phone hardware division after its 2013 acquisition of Nokia's hardware units that has failed to generate momentum.

In his letter to Microsoft employees, Nadella reaffirmed that he doesn't take such changes lightly, and that the company has plans for its future, with Microsoft moving from a hardware-focused phone strategy and pivoting to the building of a "vibrant Windows ecosystem."

I don’t take changes in plans like these lightly, given that they affect the lives of people who have made an impact at Microsoft. We are deeply committed to helping our team members through these transitions.

I am committed to our first-party devices including phones. However, we need to focus our phone efforts in the near term while driving reinvention. We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem that includes our first-party device family.

As the iPhone and Android devices have taken increasingly large shares of the smartphone market, Microsoft's Windows Phone division and BlackBerry have struggled to compete, seeing their market shares fall to the low single digits in many countries. Nadella's suggestion of Microsoft's phone business shifting to a more software-focused angle could point towards services like Cortana -- already announced to be coming to iOS later this year -- seeing an increase in attention and focus from Microsoft in the coming months.

Top Rated Comments

JoJack82 Avatar
72 months ago
That's 7500 more people than the number of people who own a Windows phone.
Score: 36 Votes (Like | Disagree)
diddl14 Avatar
72 months ago
Wow. That's a sad ending of the Nokia legacy. These guys made great phones..
Score: 18 Votes (Like | Disagree)
BigMcGuire Avatar
72 months ago
"We are deeply committed to helping our team members through these transitions." You're fired. Kthxbai.
Score: 15 Votes (Like | Disagree)
bpeeps Avatar
72 months ago

Wow. That's a sad ending of the Nokia legacy. These guys made great phones..

The Nokia ringtone will live on in our hearts.



Rest in peace.
Score: 14 Votes (Like | Disagree)
AppleInLVX Avatar
72 months ago

"We are deeply committed to helping our team members through these transitions." You're fired. Kthxbai.

No kidding. Those poor people. It's the thing I hate most about working for "The Man". You're not even human anymore. You're a 'resource' and if the money isn't there, you can go starve in a ditch for all anyone at your company gives a rat's ass.
Score: 13 Votes (Like | Disagree)
FSMBP Avatar
72 months ago
I wish Microsoft's Windows Phones were successful. They came out in 2010 with a modern UI before iOS or Android. They integrate with PCs very nicely & they are responsive devices.

I feel like if it was Microsoft vs. Apple on the phone business, Apple would be further pushed to dominate/innovate in software (just like Apple did with Mac OS X in the early/mid 2000s).
Score: 7 Votes (Like | Disagree)

Top Stories

lg wing

LG Considering Exit From Smartphone Business, Halts LCD Production for iPhone

Wednesday January 20, 2021 5:38 am PST by
LG is considering exiting the smartphone business entirely amid declining shipments and accrued losses of $4.5 billion over the past five years (via The Korea Herald). LG CEO Kwon Bong-Seok cautioned staff earlier today that the company is re-evaluating its presence in the smartphone industry: Since the competition in the global market for mobile devices is getting fiercer, it is about...
2019 mac pro side and front

Tim Cook Gifted Donald Trump 'First' 2019 Mac Pro

Wednesday January 20, 2021 5:45 pm PST by
Apple CEO Tim Cook gifted former United States President Donald Trump with the first 2019 Mac Pro that came off of the assembly line in Austin, Texas, according to a financial disclosure report that was released today (via The Verge). "Mac Pro Computer, the first created at the Flex Factory in Austin, Texas," reads the entry, which values the machine at $5,999, the base price for a Mac Pro....
Apple VR Feature

Bloomberg: Apple's First AR/VR Headset 'Pricey, Niche Precursor' to More Ambitious AR Glasses and Could Launch Next Year

Thursday January 21, 2021 3:27 am PST by
Apple's first virtual reality headset will be a "pricey, niche precursor" to a more ambitious augmented reality product, according to a new report from Bloomberg's Mark Gurman. As a mostly virtual reality device, it will display an all-encompassing 3-D digital environment for gaming, watching video and communicating. AR functionality, the ability to overlay images and information over a view...
Flat MacBook Air Feature

Bloomberg: Apple Working on 'Thinner and Lighter' High-End MacBook Air With MagSafe, Could Launch in Second Half of 2021

Friday January 22, 2021 3:34 am PST by
Apple is working on a "thinner and lighter" version of the MacBook Air that the company plans to release during the second half of this year at the earliest or in 2022, according to a new report by well-connected Bloomberg journalist Mark Gurman. It will include Apple's MagSafe charging technology and a next-generation version of the company's in-house Mac processors. Apple has discussed...
iOS 15 icon mock banner

iOS 15 Rumored to Drop Support for iPhone 6s and 2016 iPhone SE

Thursday January 21, 2021 11:58 am PST by
Apple's upcoming iOS 15 operating system, which we expect to see unveiled in June, is rumored to be dropping support for a few of Apple's older iPhones. According to French site iPhoneSoft, iOS 15 will not be able to be installed on the iPhone 6s, the iPhone 6s Plus, or the 2016 iPhone SE, all of which have an A9 chip. The iPhone 6s and 6s Plus were introduced in 2015 and are now more...
iphone 12 vs iphone 12 mini

Apple Shifting Some Production From iPhone 12 mini to iPhone 12 Pro to Meet Demand

Wednesday January 20, 2021 8:12 am PST by
Apple has reportedly cut production of the iPhone 12 mini by two million units to create more manufacturing capacity for the iPhone 12 Pro, according to a new Morgan Stanley investment note seen by PED30. Apple is believed to have made the switch for the first quarter of 2021 in an effort to combat continuing lead times for the more popular iPhone 12 Pro. iPhone 12 Pro lead times remain ...
iPhone 13 Notch Feature

iPhone 13 Rumored to Feature Smaller Notch, Pro Model Cameras to Use Larger Image Sensor

Thursday January 21, 2021 1:38 am PST by
Apple's iPhone 13 series will feature a redesigned Face ID system that will allow for a smaller notch at the top of the screen, according to a new report today. The rumor comes via hit-and-miss Taiwanese industry publication DigiTimes, whose supply chain sources also claim that the ultra wide-angle lens in Apple's next-generation iPhones is due for an upgrade. The next-generation iPhones'...
maxresdefault

Video Demos macOS Catalina Running on iPad Pro via x86 Emulation

Thursday January 21, 2021 11:36 am PST by
A video demonstrating macOS Catalina running on a current 2020 iPad Pro has been shared on YouTube, giving us a look at an interesting hack that has a Mac OS up and working on one of Apple's iPads. There's limited information about how the process of getting macOS Catalina on an iPad Pro works, but it uses x86 emulation and was done through the UTM software that allows virtual machines to...
iOS 14

Apple Seeds iOS 14.4 and iPadOS 14.4 Release Candidate to Developers and Public Beta Testers

Thursday January 21, 2021 10:14 am PST by
Apple today seeded the RC version of upcoming iOS 14.4 and iPadOS 14.4 updates to developers for testing purposes, with the new betas coming a week after Apple released the second betas. iOS 14.4 and iPadOS 14.4 can be downloaded through the Apple Developer Center or over the air after the proper profile has been installed on an iPhone or iPad. Paired with the HomePod 14.4 beta that is...
iPhone OIS Feature2

Sensor-Shift Camera Stabilization Rumored to Expand to Entire iPhone 13 Lineup

Wednesday January 20, 2021 7:46 am PST by
The entire iPhone 13 lineup will feature sensor-shift optical image stabilization, compared to only the iPhone 12 Pro Max among current models, according to a brief story preview shared today by Taiwanese publication DigiTimes. "Apple's next-generation iPhones slated for launch in the second half of 2021 will all come with sensor-shift stabilization technology, according to industry...