Microsoft smartphone business is being restructured, which is not a surprise. It would cut nearly 7,800 jobs, which is about 7 percent of its workforce, maximum of which will be done in the phone hardware business. Microsoft also said that it would write down $7.6 billion related to its Nokia business.
Microsoft smartphones has struggled to make a strong position in the mobile market, which is dominated by Google’s Android and Apple’s iOS. Microsoft acquired Nokia in an attempt to control both phone hardware and software as Apple is doing.
According to some analysts, job cuts may mark the beginning of Microsoft smartphones exit from mobile business. Consumers have now shifted more of their time to mobile than on PC’s, so it is vital for Microsoft to remain in the market through a successful Windows 10 launch.
What company is planning out with Microsoft smartphones?
Microsoft wants the windows phone to become part of Windows 10 ecosystem that include desktops, laptops, tablets and other devices that can run Windows. The main idea is to have a common interface for its customers.
“We plan to narrow our focus to three customer segments where we can make unique contributions and where we can differentiate through the combination of our hardware and software. We’ll bring business customers the best management, security and productivity experiences they need; value phone buyers the communications services they want; and Windows fans the flagship devices, they’ll love,” said Satya Nadella in his email to Microsoft employees.
Last month, Microsoft handed over much of its advertising business to AOL and sell mapping assets to Uber. Microsoft smartphone business is being restructured and it will allow Microsoft to devote resources in the stronger areas such as software and cloud development. It is also setting its sights on major growth in areas related to business users.