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Smartphone fallout: Microsoft to cut up to 7,800 jobs
Published in Saudi Press Agency on 08 - 07 - 2015


Microsoft announced more fallout
Wednesday from its ill-fated acquisition of Nokia's mobile handset
division, saying it would eliminate up to 7,800 jobs and write off
7.6 billion dollars (6.9 billion euros) in a "fundamental
restructuring" of its phone business, according to dpa.
Additionally, the company will pay restructuring costs of 750 to 850
million dollars (679 to 769 million euro), it said in a press
release.
Microsoft chief executive Satya Nadella said the company would drop
plans for an independent phone business.
"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," Nadella said in an email to
employees.
Microsoft acquired the Finnish telecommunications company's mobile
phone business and patents for a combined 5.44 billion euro in the
spring of 2014, hoping to increase its share of the mobile phone
market.
The move failed, and a year ago, Microsoft announced it would slash
18,000 jobs, mostly from Nokia.
Once the world's leading mobile phone maker, Nokia has in recent
years been overtaken by Apple and Android-system smartphones. In
2011, the company joined Microsoft in a strategic partnership, opting
to use Microsoft's Windows Phone operating system in an attempt to
regain ground.
The Finnish government said it was "disappointed" with the new cuts.
Microsoft has about 3,200 employees in Finland, 2,300 of whom will be
affected, the government said.
Finland said it would propose measures to fund regional aid and
re-employment when parliament convenes in September after the summer
recess.


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