It is no news that Microsoft’s phone division is struggling, even after acquiring the famous Nokia two years back. This time, the company has decided to cut around 1850 jobs in its smartphone division. Recently, Nokia sold its feature phone division to tech giant Foxconn for $350 mn so it can be assumed that they are going on a downward spiral.
Satya Nadella, CEO of Microsoft confirmed this decision and said that the employees will be let go from its Finland smartphone plant. In total around 1850 employees will be shed off which will write down more than $950 million from its business. However, it was not confirmed as to how many employees are currently working in the smartphone division of the company.
After this news came out in the media, shares of Microsoft were trading around $52 on Wednesday. When Satya Nadella came into the chief executive position, the shares were merely $32 but it has significantly rose in these years.
Microsoft has shaped up itself more into a device focussed company as it was always known as a software company. Recently, when Satya was made the CEO, they made a deal to buy the struggling handset business of Nokia. This deal was made at $7.2 billion but they have struggled hard to refurbish themselves in the phone business. Windows operating system didn’t quite go well with the phones as much as it did with computers and soon, they are trying to launch Android powered phones.
However, they said that the Windows 10 operating system will continue for phones but made no comments on whether Microsoft will make them. They also mentioned that they would keep supporting the Lumia smartphones but did not say whether they will launch any new phones in that space.