Microsoft disconnects from Nokia, set to cut 7800 jobs
Microsoft planning to layoff nearly 7% of its work force
In a major restructuring of its mobile devices business, US tech giant Microsoft today said it is writing off $7.6 billion it spent on acquiring Nokia and will cut 7,800 jobs, but was silent on India impact. These job cuts are in addition to the 18,000 jobs that it planned to cut a year ago.
“I want to update you on decisions impacting our phone business… We anticipate that these changes, in addition to other headcount alignment changes, will result in the reduction of up to 7,800 positions globally, primarily in our phone business,” Microsoft CEO Satya Nadella said in an email to employees.
He said that restructuring of phone business has led to an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services business in addition to a restructuring charge of approximately $750 million to $850 million.
This is the second round of job cuts since Satya Nadella took over as chief executive in February 2014. Microsoft said last July it would slash up to 18,000 jobs.
Microsoft was widely expected to write off all or part of the $7.2 billion it paid for Nokia’s handset unit in 2014, a deal that left the company with a struggling business and only 3 percent of the smartphone market.