Microsoft plans 2nd layoff of 7,800 jobs
Print Edition
MICROSOFT plans to cut 7,800 jobs and reorganize its Windows Phone unit which has struggled in the mobile market.
The move represents the second major round of layoffs in a year for Microsoft, which cut some 18,000 jobs a year ago as part of its effort to integrate the Nokia handset division.
Most of the cuts at the US tech giant will be in the phone division, and the company will write down the value of its phone business acquired from Nokia by some US$7.6 billion.
A Microsoft statement yesterday said it would “restructure the company’s phone hardware business to better focus and align resources.”
Microsoft has failed to get much traction for its Windows Phone platform even with the acquisition of Nokia. A survey by IDC said Windows was expected to capture just 3.2 percent of the global smartphone market this year.
“I am committed to our first-party devices including phones. 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,” Chief Executive Satya Nadella said in a memo to staff.
Microsoft plans to start rolling out Windows 10 in late July, introducing a new operating system which can be used to power not only personal computers but mobile devices.
Microsoft had about 118,000 employees globally at the end of March, its website said, with about half in the US.
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