Microsoft Corporation (NASDAQ:MSFT) said that it plans to restructure its mobile device hardware business to place more focus on resource alignment.
The company also followed up with a statement that the restructuring process will result in job losses for 7,800 employees, especially from the mobile device business. The company plans to write down its Nokia acquisition for $7.6 billion. The announcement follows the company’s efforts to align its priorities. This includes recent changes to leadership, its engineering team and a shift in its advertising business. It also includes recent dealings with Uber.
Microsoft’s CEO, Satya Nadella outlined the firm’s latest plans in an email to the employees. The content of the email quoted plans to shift from a strategy that supports a standalone business to a strategy that will foster a strong Windows ecosystem. He also mentioned the company’s plan to harness an effective short-term mobile phone portfolio to strengthen the long-term reinvention in mobility.
These changes do not mean that the Windows smartphones are not going to be available in the future. Nadella claims that the company will still have ties with first-party devices with mobile phones included. But as far as the acquisition of Nokia is concerned, it was only intended to maintain a constant flow of Windows smartphones. Microsoft claims that this is no longer its priority.
Regardless of the new changes, it is important to note the importance of the Nokia’s partnership. Nokia Lumia devices represent 97% of all the Windows phones occupying in the market. Microsoft Corporation (NASDAQ:MSFT) would not have been able to make a significant stand in the mobile device arena were it not for this deal. For some reason, taking over Nokia and rebranding the stores and products happened at such a quick pace thus leaving many questions unanswered.
Though it is not completely clear what Microsoft’s future in the mobile device world looks like, the company is resourceful and has never lacked ideas. The new changes only lead to more curiosity as to what the company will offer next.