Microsoft Takes New Look At Phone Business

Microsoft Takes New LookMicrosoft Corp., the multinational technology giant, has announced new plans to restructure its phone hardware business.

The company in a statement said this latest move is to better focus and align resources.

In light of this, the company will eliminate up to 7,800 positions, primarily in the phone business. Consequently, the company will record an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services (NDS) business in addition to a restructuring charge of approximately $750 million to $850 million.

The company said in a statement that it is seeking to better align its priorities as per recent changes to its engineering teams and leadership, plans to transfer the company’s imagery acquisition operations to Uber, and shifts in its display advertising business that enable the company to further invest in search as its core advertising technology and service.

“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 the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”

The actions associated with the company’s new plans are expected to be substantially complete by the end of the calendar year and fully completed by the end of the company’s fiscal year.

Davy Desmond, Readers Bureau, Fellow

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