In a recent report, Microsoft has been readying themselves for a restructuring, or “reinvention” as they call it. Last month, Microsoft employees has been sent an e-mail from the CEO of Microsoft, Satya Nadella, that addresses this issue as it was a tough call to be made for restructuring.
Through this process, Microsoft said that they will gradually cut up to 7,800 jobs for the next couple of months. Nadella added that the cuts will mostly be from the mobile-phone business that they’ve acquired through the acquisition of Nokia’s Devices and Services.
It’s then added that Microsoft will be writing off Nokia’s acquisition with US$7.6 billion (MYR31 billion) – of which is US$0.4 billion (MYR1.63 billion) more than the initial amount Microsoft paid to get Nokia. Alongside with that, they will have a restructuring charge of around US$750~US$850 million (MYR3.06~MYR3.47 billion). Previously, Microsoft has sold off their mapping and advertising business as well.
In the e-mail, CEO Nadella addressed that this process should be taken in a positive way. Other details regarding how other handset devices will go forward is unclear, however. Nadella is committed to their first-party devices that include phones and promised that they will bring something to the table so that the fans will love.
With that, they promised to have more innovation and invention to have more opportunities in the Windows ecosystem. They also stated that they are focusing on reinventions that will have mobility of experiences across the whole device families of Windows, and this includes phones as well.
The future of Windows 10 as a platform in smartphones are uncertain at this point. However, with the lay-off, it’s quite hard to tell what will happen next. Stay tuned with techENT as we will cover this issue in the future!