Microsoft Cutting 7,800 Jobs In Hardware Division, But Xbox Is Unaffected
Here’s hoping that all those people get back on their feet, quickly.
Being unemployed sucks. Seriously. It’s one of the worst things in the world, which is why writing up news like this makes me very sad. Unfortunately, it is what has happened- Microsoft has announced a major round of layoffs, in which it will be getting rid of as many as 7,800 people from its workforce around the world. The job cuts represent about 6% of the total work force of the company, and will be targeted mainly at the hardware division, specifically mobiles, as Microsoft re-aligns its strategy.
“We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family,” Microsoft CEO Satya Nadella said. “In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”
“As a result, the company will record an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services (NDS) business in addition to a restructuring charge of approximately $750 million to $850 million.”
Microsoft’s phone strategy has consistently been scattershot, from branding errors to mismanagement of OEM partners, from userbase fragmentation to a lack of focus on the smartphone market. The upcoming Windows 10 aims to change all of that, although whether that actually happens this time is anybody’s guess.