Microsoft Corp announced on Monday that it is about to cut 7,800 jobs, that is nearly 7 per cent of its workforce and will write down $7.6 billion to business related to Nokia.
Most of the phone hardware business will get the layoffs, underscoring the shifts in focus of the company’s hardware to software and cloud.
According to media reports, third of job cuts will be from Finland, where a development unit will be shut down by the Microsoft Corp.
Microsoft announced 18,000 job (nearly 14 per cent of its workforce) cuts in last July, which is one of the biggest layoffs in tech history. It is the second round of layoffs since its Chief executive, Satya Nadella took over in February 2014.
Microsoft announced in June that the former top boss at Nokia and its three other high-level executives are leaving the firm.
Daniel Ives, FBR Capital Markets analyst wrote in a note that Overall, they believe that a proactive approach of Nadella at cleaning up the Nokia acquisitions is a positive tipping of the hand around the focus on software from Microsoft.
Shannon Cross, a cross research analyst expects Microsoft to more cost trim in the next few years in order to compete in the smartphone market.
The share of the company rose as much as 1.4 percent on Wednesday and have risen about 22 percent since Nadella took over.
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