Big news out of Microsoft this morning, as the Redmond company has announced some major changes to its mobile division.
Microsoft says that it plans to “restructure” its phone hardware business in an effort to better focus resources. MSFT will cut up to 7,800 jobs, most of which will be in its phone business, and will take a $7.6 billion charge related to its 2014 acquisition of Nokia’s Devices and Services division, which it paid $7.2 billion for. Microsoft is also ponying up $750 million to $850 million in restructuring charges.
Here’s what Microsoft CEO Satya Nadella had to say about today’s mobile news:
“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. In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”
This is a big hit for Microsoft’s phone division, and it’s going to be interesting to see what happens with Windows Phone and Windows 10 Mobile in the future. From Nadella’s statement, it sounds like we could see fewer Windows Phone devices released in the near future. Will one be the flagship phone that Windows Phone fans have been yearning for? The rumor mill thinks so.