London, May 25: Signalling the end of its Nokia experiment, tech giant Microsoft on Wednesday announced it was cutting 1,850 jobs and writing off $950 million of which $200 million will be used for severance payments, a media report said. “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,” Indian-born Microsoft CEO Satya Nadella said in a statement. Also Read - Cyber ALERT: Chinese Hackers Breach Microsoft Business Email Software Raising Security Crisis Globally. Details Here
“We will continue to innovate across devices and on our cloud services across all mobile platforms,” Nadella added. According to a report on technology website The Verge, the latest job cuts mean that the majority of former Nokia employees will no longer be working at Microsoft. Most of the layoffs — a total of 1,350 — will be at the tech giant’s mobile division in Finland, the country where Nokia was born. (ALSO READ: Infosys to collaborate with Microsoft on analytics solutions) Also Read - Facebook, Google, Microsoft, TikTok Adopt Australian Misinformation Code to Address Spread of Fake News
Almost a year ago, Nadella had announced a “more effective and focused phone portfolio” with business, value phones and flagships gaining prominance. After acquiring Nokia’s phone business for $7.2 billion two years ago, Microsoft wrote off $7.6 billion last year and cut 7,800 jobs to refocus its phone efforts. Also Read - Budget 2021: Amazon, Flipkart, Microsoft Will Have to Pay 2% Extra Tax Now
“We’re scaling back, but we’re not out!” said Terry Myerson, Microsoft’s head of Windows and devices. “Phone success has been limited to companies valuing our commitment to security, manageability, and continuum, and with consumers who value the same,” Nadella added. Microsoft’s Lumia and Windows Phone strategy has failed as both sales and Windows Phone market share have declined since the tech giant’s mobile restructuring last year. It is believed that the multinational technology company has been working on a ‘plan B’ if Nokia wasn’t successful with Windows Phone.