However, not everyone will be applauding Microsoft after its announcement today, and rightfully so. The Washington-based technology corporation has officially announced plans for the global restructuring of its phone hardware business, which will result in roughly 7,800 people around the world losing their jobs.
In a press release via its official News Center, Microsoft lays out the details of its business model’s reorientation, saying that the action is being made in order to “better focus and align resources.” The unfortunate news comes after Microsoft’s acquisition of Nokia last year for $7.1 billion. Additionally, in a strange move, the computer hardware and software conglomerate is writing off $7.6 billion following the purchase.
While most of the layoffs will presumably impact the mobile department — as it’s the only division mentioned — it’s still up in the air as to whether or not any of the company’s other sectors will be affected by the decision. Also, in light of this news, it’s definitely worth mentioning that just last year, Microsoft dismissed approximately 14% of its entire workforce, which makes one wonder if today’s announcement can be conflated with 2014’s severance report, or if it’s a standalone issue.
In an email to company employees, Microsoft’s CEO Satya Nadella addresses the matter, saying:
“We anticipate that these changes, in addition to other headcount alignment changes, will result in the reduction of up to 7,800 positions globally, primarily in our phone business. We expect that the reductions will take place over the next several months.”
“I don’t take changes in plans like these lightly, given that they affect the lives of people who have made an impact at Microsoft. We are deeply committed to helping our team members through these transitions.”
While Microsoft isn’t exactly offering any concrete details beyond corporate-speak as to why the firings have occurred, more details about the change are expected to be announced on July 21, and in the company’s 2015 Annual Report on Form 10-K. Bearing this in mind, it’s highly possible that Microsoft will be shifting a lot of its efforts into refining Windows 10 and attempting to invigorate more revenue for its Surface tablets and Xbox Ones, as the firm’s gaming reputation in the East is flagging, as indicated by the console’s Japan sales being quite low.
We here at Game Rant truly wish the best for each and every individual affected by the layoffs.