So it probably came as no surprise that when Microsoft announced they were leaving the smart phone business earlier this year, that there would be job losses.
What has come as a surprise however is that the company has revealed that number of staff facing the axe is more than double the number everyone had been led to expect…
The grim news for some employees only came to light thanks to a filing that Microsoft had to file with the US Securities and Exchange Commission in the US
“In addition to the elimination of 1,850 positions that were announced in May 2016, approximately 2,850 roles globally will be reduced during the year as an extension of the earlier plan, and these actions are expected to be completed by the end of fiscal year 2017.”
The new cuts, which were disclosed in the company’s annual report on Thursday, come on top of the 1,850 lay-offs announced in May as the company retreated even further from the phone business.
In total, Microsoft laid off 7,400 employees in its last fiscal year, which ended on June 30.
Part of the job losses reflects the Washington based tech giant’s strategic pivot toward more software and loud based services.
“The mobile-first, cloud-first world is transforming the way individuals and organizations use and interact with technology. Mobility is not focused on any one device; it is centered on the mobility of experiences that, in turn, are orchestrated by the cloud.”
Essentially it seems that rather than trying to compete with hardware in a market place where Android has 84% of the smart phone market, and Apple 15%, instead, Microsoft have decided to focus on getting users to use their apps and software on these devices rather than on their own custom hardware.
In May when the company decided to bin Windows phones, their total segment capture was less than 2 percent of the global smart phone market, and despite their latest phone offerings hitting the sweet spot between price and quality, their share of the market was falling.
Microsoft has effectively now ended all its investment of all of the Nokia mobile phone business that it acquired back in 2014 for $7.2 billion.