Microsoft has laid off hundreds of employees tied to its smartphone business, as the company finally exits the consumer phone market and attempts to streamline its worldwide mobile division (via The Verge).

The move will impact up to 1,850 jobs worldwide, said Microsoft's head of Windows and devices Terry Myerson, while up to 1,350 of the positions will be in Finland. The cuts are expected to be completed by the year's end.

Microsoft Logo
The move signals the final nail in the coffin for Microsoft's Nokia business, which the company acquired under former CEO Steve Ballmer's management for $7.2 billion in 2014. Today's announcement will see $950 million written off, adding to the $7.6 billion the company wrote off last year when it cut 7,800 jobs to refocus its Windows Phone plans.

Microsoft is now shorn of almost all of its 25,000 former Nokia employees, and will only retain a small number in R&D roles. Last week, the company announced it was selling off its feature phone business to FIH Mobile, a subsidiary of Foxconn, for $350 million.

All indications point to an end of Microsoft's Lumia phones and a focus on a single Surface phone, with Myerson promising "great new devices" in an internal memo to employees, although he withheld any specific timeframe. The immediate focus for Microsoft and its new CEO, Satya Nadella, is more likely to remain on bringing the company's software and services to iOS and Android devices, rather than risk another consumer phone failure anytime soon.

Microsoft has been scaling back its consumer phone ambitions ever since its ill-fated Nokia mobile acquisition two years ago. Nokia meanwhile has shown far loftier ambitions, last month announcing its acquisition of French health tracking company Withings for an estimated $192 million, as it seeks to expand into the consumer electronics market while maintaining its networking and commercial VR business.

Top Rated Comments

djcerla Avatar
65 months ago
Karma is a bitch.

Score: 33 Votes (Like | Disagree)
Kajje Avatar
65 months ago
HP (and Palm till an extend), Blackberry, Sony / Ericsson (both and both combined), Nokia, Microsoft and Motorola.

It's incredible that established, megacompanies with virtually unlimited resources, some known for changing the mobile landscape, some known for actually creating that same landscape, haven't been able to get it right.

Samsung was making kitchen sinks, Apple was making niche desktop computers, Google was.... was making Google.

People say it's all about money. But in this situation, was it?
Score: 11 Votes (Like | Disagree)
2010mini Avatar
65 months ago
Sucks for all the employees when their execs make terrible decisions that lead to stuff like this. Hope their severance package is good
Score: 6 Votes (Like | Disagree)
maflynn Avatar
65 months ago
a focus on a single Surface phone,
I can't say that a Surface phone will be any more successful. I know the Surface Pro line is very successful, but will they be looking to run a full version of windows, which is what the SP run? If not, how different will the Surface phone be, from the old Lumia
Score: 6 Votes (Like | Disagree)
Mr. Dee Avatar
65 months ago
Coming from a Windows centric background, even I saw the writing on the wall as far back as 2013 that this acquisition was going no where. The desperation was just out of control under Steve Ballmer's leadership after his failed attempts in the early smartphone race. He was so naïve for dismissing the iPhone back January 2007. Even I saw the iPhone as an immediate game changer when Steve demoed it at Macworld.

Google saw it too and immediately reversed their plans. Steve Ballmer should have gathered team the same day and have what is now Windows Phone OS ready by at least fall of '08. They would have been a bit behind, but not by much. The market would have been likely split between Microsoft, Google and Apple. Anyway, I have moved on and I am enjoying my iPhone 6s. The fact that my iPhone 4s from 2011 which I use as an iPod can run iOS 9.3 while my Nokia Lumia 625 from 2013 is still stuck on Windows Phone OS 8.1 with mediocre apps just proves Microsoft still doesn't get mobile.
Score: 5 Votes (Like | Disagree)
Three141 Avatar
65 months ago
Sucks for all the employees when their execs make terrible decisions that lead to stuff like this. Hope their severance package is good
This is what annoys me and what surprises me even more is despite the public failing the execs usually land in another high profile role.
It could be naivety on my part but I just don't get why/how this keeps happening.
Score: 3 Votes (Like | Disagree)

Top Stories

apple watch ecg

Apple Watch Likely to Gain Blood Pressure, Blood Glucose, and Blood Alcohol Monitoring

Monday May 3, 2021 4:03 am PDT by
The Apple Watch may gain the ability to measure blood pressure, blood glucose, and blood alcohol levels, according to newly-revealed information about one of Apple's chosen business partners. Apple has been revealed to be the largest customer of the British electronics start-up Rockley Photonics, The Telegraph reports. Rockley Photonics has developed non-invasive optical sensors for...
tile sticker e1570533758981

Tile CEO: 'We Welcome Competition From Apple, But We Think It Needs to Be Fair'

Tuesday May 4, 2021 9:51 am PDT by
Just after Apple announced its AirTags, Tile CEO CJ Prober relayed his concerns about competing with Apple in the tracking space, and said that Tile would ask Congress to investigate Apple's business practices specific to Find My and item trackers. Prober this week did an interview with Bloomberg, where he further expanded on Tile's complaints about Apple and why he feels that Tile is...
facebook instargram updated att prompt 1

Facebook and Instagram Ask Users to Enable App Tracking in Order to Keep Services 'Free of Charge'

Sunday May 2, 2021 1:22 pm PDT by
As a way to convince users to enable tracking across other apps and websites, Facebook is deploying the tactic of telling users that they must enable tracking as part of the App Tracking Transparency framework in iOS 14.5 if they want to help keep Facebook and Instagram "free of charge." App Tracking Transparency or ATT is the newest privacy feature to come to iPhone and iPad devices as part ...
fortnite apple logo 2

Epic CEO Tim Sweeney Admits App Store's 30% Cut Is Similar to Consoles, Would Have Accepted Special Deal With Apple

Tuesday May 4, 2021 1:54 pm PDT by
Apple's legal battle with Epic Games is continuing on, and during the second day of the trial, Epic Games' CEO Tim Sweeney continued his testimony against Apple. Sweeney was grilled by Apple's lawyers, and made several points seemingly favorable to Apple. In addition to mentioning how he prefers Apple's iPhone and values Apple's privacy policies that he's aiming to dismantle, Sweeney...
Flat 2021 MacBook Pro Mockup Feature 1

Mini-LED Display Production Improving for Redesigned MacBook Pro Models Later This Year

Monday May 3, 2021 8:33 am PDT by
Apple supplier TSMT, a key vendor involved in the production of mini-LED displays in the newly announced 12.9-inch iPad Pro, has been able to address technical challenges for the production of mini-LED displays to be used in the upcoming 14 and 16-inch redesigned MacBook Pro models. As reported by DigiTimes, TSMT had initially been facing production constraints with the circuit board and...
signal instagram ads3

Signal Shares the Instagram Ads Facebook Doesn't Want You to See

Wednesday May 5, 2021 1:29 am PDT by
Encrypted messaging app Signal has had a series of Instagram ads blocked from the social media platform, after it attempted to show users how much data the Facebook-owned company collects about them and how it's used to push targeted ads. In a blog post, Signal described how it generated the ads to show users why they were seeing them, simply by declaring upfront the information that the...
Foldable iPhone 2023 Feature Yellow

Kuo: Apple to Launch 8-Inch Foldable iPhone in 2023

Sunday May 2, 2021 8:43 pm PDT by
Apple is working to launch a foldable iPhone with an 8-inch QHD+ flexible OLED display in 2023, Apple analyst Ming-Chi Kuo said today in a note to investors that was seen by MacRumors. Based on our latest industry survey, we forecast that Apple will likely launch a foldable iPhone with an 8-inch QHD+ flexible OLED display in 2023, with SDC as the exclusive display supplier and Samsung Foundry...
iOS 14 on iPhone feature emergency

Apple Releases iOS and iPadOS 14.5.1 With Fixes for App Tracking Transparency Bug, WebKit Security Issues

Monday May 3, 2021 10:04 am PDT by
Apple today released iOS and iPadOS 14.5.1, minor security updates that come just a week after the release of the iOS 14.5 update. There is also a companion watchOS 7.4.1 update for Apple Watch and an iOS 12.5.3 update for older iPhone and iPad devices that don't support Apple's latest operating system versions. According to Apple's release notes, the update fixes a bug with App Tracking...
airtags teardown tile mat galaxy smarttag

iFixit Shares AirTag Teardown Revealing 'Impressively Compact' Design Compared to Tile Mate and Galaxy SmartTag

Sunday May 2, 2021 4:54 am PDT by
iFixit has shared the first of its two-part series in tearing down Apple's AirTag item tracker, revealing that Apple had to make impressive design decisions to achieve its small design, including rethinking the speaker layout. For comparison, iFixit compared Apple's AirTag to the Tile Mate and the Samsung Galaxy SmartTag. Compared to the competition, AirTag is the smallest in size, with the...
maxresdefault

Hands-On With Brydge's 12.9-Inch iPad Pro Keyboard With Trackpad

Tuesday May 4, 2021 11:48 am PDT by
Brydge has been making keyboards for Apple's iPads for years now, and the newest model, the Brydge 12.9 MAX+, is compatible with the third, fourth, and fifth-generation iPad Pro models, so it works even with the new mini-LED iPad Pro. Subscribe to the MacRumors YouTube channel for more videos. In our latest YouTube video, we checked out the new Brydge 12.9 MAX+ to see if it's a viable...