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 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.
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.