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Microsoft Phone Business: Cuts Up to 1,850 Jobs, Writes off $950 Million

Microsoft this morning announced it is streamlining its Windows Phone hardware business, and will only focus on business customers moving forward. As a result, Microsoft will cut 1,850 employees and write off $950 million.

Microsoft Continuum

Microsoft Streamlining its Phone Business

According to a statement from Microsoft CEO Satya Nadella:

We are focusing our phone efforts where we have differentiation — with enterprises that value security, manageability and our Continuum capability, and consumers who value the same. We will continue to innovate across devices and on our cloud services across all mobile platforms.

In breaking down the numbers, Microsoft says the restructuring will result in a reduction of up to 1,350 jobs at Microsoft Mobile Oy in Finland and an additional 500 jobs globally.

As Mary Jo Foley reports “the impairment and restructuring charge” will be at approximately $950 million, with around 200 million of that amount related to severance payments.

Microsoft stated last year that it’s going to move away from consumer-oriented phones and focus more on targeting companies that value security, and the Continuum feature.

If you’ve been a Windows Phone user or Microsoft watcher for the past couple of years, you’ve seen a decrease in the sales of Windows Phone 8.1 and the new Windows 10 Mobile phones. Keep in mind, though; Windows 10 Mobile isn’t just for phones, it’s for tablets and other devices. For example, the company recently changed its hardware requirements for Windows 10 Mobile screen sizes, and Windows 10 RAM requirements for PCs.

Last July Satya said that Microsoft would reduce the number of Windows Phone models, too. At the Build developer’s conference, Windows Phone was virtually non-existent, and its service orientated apps (think Office 365) on Android and iOS were prominently featured.

While today’s news doesn’t mean Windows Phone is dead, the forecast continues to show bad things in the future.

I hate to see this because Windows Phone 8.1 and 10 are an excellent mobile operating system. But I held out as long as I could and recently purchased the Nexus 6P. Android is customizable like Windows, and all of the Microsoft apps for services i.e. Office 365, OneDrive, Groove Music, and many others right there.

Microsoft Apps Android

Yes, I changed out all of the default Google apps and set everything possible to default Microsoft apps. If you feel it’s time to make the move, or already have, check out our article: How to Find Microsoft Apps on Android the Easy Way.

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6 Responses to Microsoft Phone Business: Cuts Up to 1,850 Jobs, Writes off $950 Million

  1. Fenoy W Butler May 25, 2016 at 7:00 am #

    I’ll wait and see what happens in the spring of `17 as my 3+ year old L928 with 8.1 continues to work fine. Didn’t buy either of the 950s as W10M seem to be a portable disaster at their release. See what Redstone brings but I would really hate to go back to Android.

  2. AL May 25, 2016 at 8:56 pm #

    I have an 830 Nokia Phone and LOVE IT. DARN, now I have to attempt to use another phone system and OS. The basic thing that I like is that similarities between my phone and my PC that runs Windows. SO, when I switch I will be stuck running my Windows OS on my Computer and CRAPY Apple OS on a Cell PHONE, IF I GET ON. My wife is always asking me to help her with her APPLE ?? CELL PHONE, and nothing makes sense to me after being with Microsoft software since DOS.

  3. Brian Burgess May 25, 2016 at 9:43 pm #

    Your Windows Phones will still work, and Windows 10 Mobile is still in development. That isn’t going to change.

    However, this looks like the end of the line for any new phones.

    From the reports I’m hearing, there will not be a new Windows Phone model from Microsoft announced until this time next year.

    And, it will be a business phone, most likely from HP, and will have the features like Continuum and Windows Hello.

    I also doubt any other manufacturers like HTC or BLU will have any interest in still making them. The market share is now under 1%.

  4. Fenoy W Butler May 25, 2016 at 10:50 pm #

    I’ll wait around and see what MS does as I’m in no crisis needing a new phone and I’m not a person that has to buy one or more new phones each year to satisfy some irresistible tech urge that has to be scratched. At present Continuum has no interest for me whatsoever and frankly I can barely understand why it has anyone’s interest – seems more of a gimmick than a bit of technology answering a need. If you need a portable computer carry anyone of the very nice, very fast, very lightweight laptops with a high resolution screen that are available and which are capable of running every app you might need. It isn’t like you are lugging around Compaq Portable that weighed 28 pounds. I simply like the WP OS and find it for the most part fluid and smooth and hope MS doesn’t completely bail on it. Hard to believe MS can or won’t get their act together however if MS abandons the WP consumer market I’ll look at what HP is suppose to be offering as well as what carriers it will work on. If none of that pans out I fear I’ll have take a bite of the Apple – and frankly I shudder at the thought.

  5. dip patel May 26, 2016 at 4:49 am #

    Dont worry guys Microsoft is seriously committed to windows 10 mobile OS.
    They have committed it to the associative companies two weeks ago.
    Windows 10 mobile is the only best OS it in the market for phones, so am not moving my hands and you guys should also do same.

  6. Fenoy W Butler May 26, 2016 at 6:50 am #

    MS has until spring of `17 or until my L928 gives up the ghost before I do something. In the spring of `17 however the L928 will be four years old and at that point it may be time to make a move.

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