Microsoft announced on Wednesday that the company will be cutting 1,850 jobs from the mobile division over the next year. These job losses cost the company a writedown of $950 million. Most of the cut jobs will be at the mobile division in Finland.
In 2014, the tech giant completely acquired Nokia’s phone division for $7.3 billion. The purchase was made by former CEO Steve Ballmer. Ballmer undertaken the struggling Nokia mobile division to begin competing with Apple and Google’s Android in the smartphone industry.
However, in the past 2 years, current CEO Satya Nadella slashed at least 25,000 jobs at the Nokia’s smartphone division to redirect Microsoft’s priority from phones. On Wednesday, Nadella said “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.”
Some of the Nokia Lumias or Windows phones received good reviews. The issue is independent app developers are neglecting them, thus creating a huge “app gap” for users.
According to Gartner, technology research firm, smartphones running the Windows operating system was below 1 percent in the first quarter of this year compared to the first quarter of 2015 which was around 2.5 percent.
Kalle Kiili, a shop steward, states: “My understanding is that Windows 10 will go on as an operating system, but there will be no more phones made by Microsoft.”
The latest Windows 10 operating system has moved into selected smartphones. Microsoft will continue to work on its other apps or services and might push further into virtual reality or augmented reality.