Microsoft plans major job cuts: reports

Tech behemoth fails to make headway in the smartphone business

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Microsoft plans major job cuts: reports Redmond -based company expected to announce major write-down of its $7.2 billion Nokia acquisition. (Peteri/Shutterstock.com)
By  David Ndichu Published  July 8, 2015

Microsoft is expected to announce a major new round of layoffs as early as this week, the New York Times is reporting.

The numbers are in addition to the 18,000 jobs the tech giant announced it was planning to shed last year, NYT says, quoting anonymous sources. At the end of March, Microsoft had more than 118,000 employees globally.

Microsoft’s hardware division will reportedly bear the brunt of the cuts, a group that includes the struggling smartphone business it acquired from Nokia last year in a $7.2 billion deal.

Microsoft has continued to struggle in the smartphones market, steadily losing market share since the now ill-fated acquisition of Nokia. Further, the Windows Phone operating system has failed to make a dent into the Android/iOS duopoly in the smartphone/tablet markets.  

Stephen Elop, the former chief executive of Nokia who became a senior Microsoft executive after the acquisition, overseeing its devices business, left Microsoft last month.

Analysts also expect Microsoft to declare a major write-down of the value of its Nokia acquisition, NYT adds. The announcement of that accounting charge, which could amount to several billion dollars, is expected by many to occur before Microsoft reports earnings this month.

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