Mi­crosoft cuts at Nokia arm

Irish Independent - Business Week - - NEWS -

MI­CROSOFT said yes­ter­day it will trim down its smart­phone busi­ness by cut­ting 1,850 jobs, most of them in Fin­land, and write down $950m (€1.25bn) from the op­er­a­tion.

The US com­pany, which en­tered the phone busi­ness in 2014 by buy­ing Fin­nish firm Nokia’s hand­set unit, said it would “stream­line” its smart­phone busi­ness and close down its re­search and de­vel­op­ment site in Tam­pere, Fin­land.

Mi­crosoft said it will con­tinue to de­velop Win­dows 10 Mo­bile plat­form and sup­port its Lu­mia smart­phones, but de­clined to say whether it would de­velop new phones.

“We are fo­cus­ing our phone ef­forts where we have dif­fer­en­ti­a­tion,” said chief ex­ec­u­tive Satya Nadella in a state­ment.

“We will con­tinue to in­no­vate across de­vices and on our cloud ser­vices across all mo­bile plat­forms.”

Ear­lier this month, Mi­crosoft di­vested its en­try-level fea­ture phones busi­ness for $350m.

It bought Nokia’s once-dom­i­nant hand­set unit for about $7.2bn, but it failed to turn the busi­ness around and last year an­nounced $7.5bn write­downs, and 7,800 job cuts.

The move from Mi­crosoft fol­lows poor re­sults, which saw the firm miss an­a­lysts’ rev­enue and prof­itabil­ity tar­gets. Mi­crosoft has strug­gled to match the rev­enues it used to make from its per­sonal com­put­ing busi­ness as it piv­ots towards cloud com­put­ing. (Reuters)

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