In order to better focus and align resources, Microsoft Corporation announced that it plans to restructure the company’s phone hardware business. The tech giant will also be cutting up to 7,800 jobs, also primarily from the phone business.
Consequently, the company will also record an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services (NDS) business.
This will be in addition to a restructuring charge of approximately $750 million to $850 million.
Microsoft confirms another wave of layoffs
“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 an email to Microsoft employees.
“In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”
Actions in line with the layoffs are expected to be almost complete by the end of the calendar year and fully completed by the end of Microsoft’s fiscal year, the company added.