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Microsoft to streamline phone business by cutting more jobs

MICROSOFT Corporation said it has a plan to cut about 2,850 more jobs across its smartphone-manufacturing business and worldwide sales force.

The company based in Redmond, Washington state, announced in May its plans to streamline smartphone hardware business by cutting up to 1,850 jobs, including up to 1,350 jobs at Microsoft Mobile Oy in Finland and up to 500 additional jobs globally.

Microsoft acquired Finnish cell phone manufacturer Nokia 19 months ago. Its additional layoffs over the next 12 months, revealed in a report filed with the U.S. Securities and Exchange Commission (SEC), was described by the software giant as "an extension of the earlier plan."

"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," said Satya Nadella, chief executive officer of Microsoft, in announcing the cut in May. "We will continue to innovate across devices and on our cloud services across all mobile platforms."

With additional cut, about 4 percent of Microsoft's workforce will be affected.

The company reported earlier this month a drop of 71 percent in phone revenue in the latest quarter.



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