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Microsoft to Streamline Smartphone Unit

NicoleMotta - May 25, 2016 - 10:42 AM
Microsoft to Streamline Smartphone Unit
A week after the sale of its feature phone unit, Microsoft has more disappointing news for Windows Phone fans.

(CCM) — "We are focusing our phone efforts where we have differentiation — with enterprises that value security, manageability and our Continuum capability, and consumers who value the same. We will continue to innovate across devices and on our cloud services across all mobile platforms," said CEO Satya Nadella in a statement on the changes. On Wednesday, Microsoft announced that it plans to "streamline" its smartphone hardware unit, which will impact up to 1,850 jobs. The Redmond giant said that this change will result in the reduction of up to 1,350 jobs at Microsoft Mobile Oy in Finland, plus an additional 500 jobs worldwide. Employees working at Microsoft Oy in Espoo will not be affected by this change. In addition to the job cuts, Microsoft will record impairment and restructuring charges of around $950 million, of which $200 million will be reserved for severance packages.

Last week, Microsoft revealed that it had sold its feature phone business to two companies: HMD and FIH Mobile Limited. These companies announced that they will be working on the next generation of Nokia-branded devices. Unlike its past smartphones, the new Nokia devices will run Google's Android operating system, bringing the Nokia name to the popular Android ecosystem. "Today marks the beginning of an exciting new chapter for the Nokia brand in an industry where Nokia remains a truly iconic name. Instead of Nokia returning to manufacturing mobile phones itself, HMD plans to produce mobile phones and tablets that can leverage and grow the value of the Nokia brand in global markets," said Ramzi Haidamus, President of Nokia Technologies. "Working with HMD and FIH will let us participate in one of the largest consumer electronics markets in the world while staying true to our licensing business model."

Photo: © iStock.
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