Microsoft Restructures Phone and Hardware Units: 7,800 Jobs to go

$7.6 billion write down associated with the Nokia Acquisition

[engine]

It seems the Nokia acquisition just didn't work out, yet Microsoft will stay in the phone business. I can't see a note as to whether it will remain a manufacturer, or will eventually subcontract the manufacturing. Either way, it's launching new phones later this year with Windows 10 Mobile.

Microsoft Corp. today announced plans to restructure the company’s phone hardware business to better focus and align resources. Microsoft also announced the reduction of up to 7,800 positions, primarily in the phone business. 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 Restructures Phone and Hardware Units: 7,800 Posts to go [news.microsoft.com]

“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,” 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.”

earlier story Microsoft Shuffles Top Executives [webmasterworld.com]

[bill]

I was never quite convinced about Microsoft's forays into hardware. I know they wanted to out-Apple the competition, but they probably should have stuck with their core competencies. They are pulling out of not just hardware, but also advertising from the sounds of things.