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Microsoft Scales Back Mobile, Cuts 1850 Jobs

Microsoft Scales Back Mobile, Cuts 1850 Jobs - News

by VGChartz Staff , posted on 25 May 2016 / 5,076 Views

Microsoft has announced that it is scaling back its mobile business. The firm has cut out 1,850 jobs and made an associated $950 million write off.

Microsoft has more or less ended it $7.2 billion Nokia buy out by cutting 1,350 jobs in Finland, though it has stated that it will help all of those impacted. 

An internal memo from Microsoft Executive Vice President for Windows and Devices, Terry Myerson, published on recode, promises that Microsoft isn't out of the mobile game but does need to re-examine its tactics:

"Windows 10 recently crossed 300 million monthly active devices, our Surface and Xbox customer satisfaction is at record levels, and HoloLens enthusiasts are developing incredible new experiences. Yet our phone success has been limited to companies valuing our commitment to security, manageability, and Continuum, and with consumers who value the same. Thus, we need to be more focused in our phone hardware efforts...

 I used the words “be more focused” above. This in fact describes what we are doing (we’re scaling back, but we’re not out!), but at the same time I don’t love it because it lacks the emotional impact of this decision. "

 

Myerson also stresses in the memo that Microsoft will continued to update and support its Lumia devices and OEM partner phones.


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14 Comments
The_BlackHeart__ (on 25 May 2016)

Smart choice. Feel sorry for the employees tho.

  • +8
Ganoncrotch (on 25 May 2016)

Holy shit... almost 2000 jobs, that is such a massive amount of peoples lives getting effected by this choice, I hope they all have some savings and a plan B, that is such a huge amount of jobs.... more than the population of some local towns near here, sad times.

  • +4
sethnintendo (on 25 May 2016)

Sucks for the employees but I'm sure they will get a decent layoff package from MS to support them for a few months while they find another job. Looks like their isn't enough room for 3 different OS in the mobile space. Let us hope that isn't ever the case for console gaming.

  • +2
hunter_alien (on 25 May 2016)

I still remember a couple of diehard MS fans saying on this website how MS has the best mobile strategy to gain ground by eroding the others market share. I guess the love of a brand can truly make one not see the inevitable. Just for the record, I did own and used a couple of Lumia's in the last couple of years. Mediocre hardware, pretty solid OS and an abysmal app-store....

  • +2
WolfpackN64 (on 25 May 2016)

As such Wintel pulls out of the smartphone game. Makes sense, Windows Phone is only sliding down and Intel will face IBM's POWER again on the server side, and AMD on the desktop, while they lost a serious amount of money in mobile.

  • +2
Ljink96 (on 25 May 2016)

I knew it wasn't going to last. The Nokia buyout was their last ditch effort and it really made no sense to me. Microsoft, just let Apple and Android have mobile. You can have PCs.

  • +2
method114 Ljink96 (on 25 May 2016)

Agreed. No idea how they thought this would ever work. I get why they tried but they had to know this would fail everyone knew it would fail.

  • +1
hunter_alien Ljink96 (on 25 May 2016)

IMO they jumped way to early on the one OS fits all bandwagon. They are now paying the fairly hefty price. As big as MS is, an 8 billion $ loss is not something that won't be noticed. Some heads will roll. I'm just sad for the average Joe, who lost his job because of this.

  • 0
Stoneysilence Ljink96 (on 27 May 2016)

It made sense to me. The problem is MS was just a tad too slow. They hadn't released any new phones for almost a year (losing a lot of market share) and then release new phones with beta software (WP10) and then were not aggressive in pushing out new phones in a timely manner when WP10 became worthy. I LOVE WP, but I just jumped to a LG G4 a few weeks ago because the 950/950XL were too expensive and the lower end phones were a bit too low end.

  • 0
Skratchy (on 25 May 2016)

I can't wait for Windows phones to die out. They really are terrible. I had three in a row, then switched to Android last November, and have never looked back.

  • +1
nanorazor (on 28 May 2016)

Windows phone is lackluster in features and apps range.

  • 0
spynx (on 27 May 2016)

MS is killing Nokia gradually, they don't have what it takes to run the mobile business. It's sad when i hear layoffs and how those affected would feel.

  • 0
malistix1985 (on 26 May 2016)

I have a Lumia 640, its a decent mobile phone I never had any problems with it and the apps and internet work fine, but I am sure there are better phones out there so if they don't sell well, this makes sense, I hope the employees find a nice other place to work.

  • 0
aLkaLiNE (on 25 May 2016)

Wow, Stephen Elop is a douche. Similar to what Google did with Motorola which is pretty shady stuff. It's tragic for the employees involved, and I think this is a case where the former CEO of Nokia just royally fucked over his former employees for the mutual benefit of himself and the heads at MS.

  • 0