After Nokia, Microsoft To Slash Thousands Of Jobs

by CXOtoday News Desk    May 26, 2016

microsoft

Just a day after the anticipation of a massive job cut by Finnish giant Nokia, Microsoft has announced that it will cut about 1850 jobs in its smartphone division, owing to shrinking sales.

The company has said that it will save about $950 million from the lay-off decision. The company flagged off its smartphone operations in the year 2014 after acquiring Nokia’s handset division and states that it will streamline its smartphone business and will also shun the R&D center in Tampere, Finland.

The US company, which entered the phone business in 2014 by buying Finnish firm Nokia’s handset unit, said it would “streamline” its smartphone business and close down its research and development site in Tampere, Finland.

The tech giant also confirms that it will continue to support its Lumia series of smartphones as well as focus on Windows 10 Mobile Platform.

The company, in the beginning of the month, announced the divestment of its entry level smartphone division for $350 million. The company bought Nokia’s mobility division onboard for $7.2 billion but eventually failed to turn around its shrinking sales.

As per research firm Gartner, Microsoft’s Windows OS accounted for just 0.7 per cent of the total smartphone shipments in the first quarter of 2016 as against 2.5 per cent share in the year ago quarter.

The company’s top official, Satya Nadella has said that the company will deviate its smartphone focus to spaces where it holds differentiation including enterprises which utilize Microsoft’s solutions for enterprise mobility and security.

The company recently also came up with its Continuum feature which allows a smartphone, utilizing Windows 10 platform to perform as a PC when connected with a monitor and keyboard.

Experts also predict that the increasing trend of businesses providing mobile devices to their employees, which run on enterprise networks, may open the door of new opportunities for Microsoft’s mobile division. The company alongside a consistent focus on its Windows 10 OS is also developing compatible applications for other mobile platforms including Apple’s iOS.

 

Microsoft last year announced 7,800 layoffs and a write-down of $7.5 billion.