Entries in Nadella (1)

Wednesday
Jul082015

Microsoft readying to lay off 7,800 workers from mobile phone unit

The reign of Microsoft CEO Satya Nadella has been punctuated by massive change in management and massive layoffs - Photo from Microsoft

By Gadjo Cardenas Sevilla

More change is afoot at Microsoft which has seen various departures in management due to recent restructuring, the ripple effect of these changes and compressions is the loss of jobs. Microsoft announced today that it will lay off 7,800 workers, majority of these coming from the declining smartphone unit, which it acquired from an already weakend Nokia just last year for US $7.2 billion. Microsoft is the third largest player in mobile behind Apple and Google, but it holds a tiny 2.5 per cent market share, with no indication of moving up.

These layoffs are separate and in addition to the expected 18,000 employees that Microsoft announced would be laid off a year ago as part of the larger restructuring plan. It must be remembered that Microsoft inherited 25,000 employees as a result of the Nokia acquistion last year. This latest development questions what the future of Windows on Mobile Phone will be. Microsoft also relayed it is writing off $7.6 billion related to its acquisition of Nokia and resulting restructuring costs which comes off as a loss for the company.

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