Two years after its $7.2 billion (£4.6 billion) purchase of Nokia’s phone business, Microsoft is cutting 7,800 jobs in an ongoing reshuffle.
In an email to employees, Microsoft CEO Satya Nadella wrote: “I want to update you on decisions impacting our phone business… We anticipate that these changes, in addition to other headcount alignment changes, will result in the reduction of up to 7,800 positions globally, primarily in our phone business..”
The email goes on to say that the company has also written off around $7.6 million, spent acquiring Nokia’s Devices and Services division.
The isn’t the first time Nadella has planned massive reforms at Microsoft; over a year ago, the CEO announced the company was cutting just under 20,000 jobs – the largest axing in Microsoft’s history.
What’s next for Microsoft?
Despite its appearance, Microsoft’s move to cut 7,800 jobs isn’t bad news for the company. Instead, it’s a sign of Microsoft cutting the fat, and becoming a more reactive, focused organisation. In the same email, Sadella wrote: “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.”
“In the near term, we will run a more effective phone portfolio, with better products and speed to market given the recently formed Windows and Devices Group.” This is exactly what Microsoft needs to do to challenge the likes of Android and Apple.
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