Microsoft Plans to Cut Another 7,800 Jobs
Once you’re a part of The Business Rich, it can be difficult to stay competitive. This statement is truer now than ever for former tech leader Microsoft. The company has faced a downward tilt for years now, with Apple owning the device kingdom and software companies from start-ups to titans like Google becoming the platform providers of choice. Still, it was the acquisition of floundering Nokia that experts say was the worst decision in Microsoft history.
The corporation has made considerable changes to offset its yearly fiscal losses, with Microsoft CEO Satya Nadella warning of tough choices on multiple occasions. Nadella inherited the Nokia problem from former CEO Steve Ballmer in 2014. A year ago, Ballmer retired and Microsoft cut a record 18,000 jobs, most of them a part of the Nokia acquisition. The 2016 cuts are a continuation of this grim phenomenon. This time, Microsoft will cut 7,800 positions. The layoffs will also be in the phone sphere of the corporation.
“Based on the new plans, the future prospects for the Phone Hardware segment are below original expectations. Accordingly, the company concluded that an impairment adjustment of its Phone Hardware segment assets and goodwill of approximately $7.6 billion is required,” read a company statement.
In addition to writing off the $7.6 billion, the corporation faces nearly $800 million in restructuring costs. Microsoft does not plan to stop competing in the smartphone market altogether but intends on refocussing its core missions, namely the expansion of Windows software. This includes mobile phones, but not just those made my Microsoft. Nadella is hoping to continue development for products that are Android and Apple friendly.