Microsoft Lays Off 1,850 Employees As It Quits Its Nokia Phone Business Experiment
Nokia phones had had its success on sales and production back a decade ago. However, as smartphone competition gets going, the company made a hard time bringing its sleeves up for a great fight. The going gets tough for the said mobile company. But in fairness, it redeemed itself back. These times, it had another dilemma that may give out headaches especially to its workers.
According to Ars Technica, after Microsoft acquired Nokia's Devices and Services in 2013, it will lay off a massive 1,850 workers. This is due to the company's closing down of its smartphone hardware business. Because of this statement, there will be 1,350 workers in Finland that will be affected. The rest of the 500 affected workers will be from elsewhere. This is a move that essentially means exiting from the phone business.
In July 2015, 7,800 staff were laid off by Microsoft, while the remaining feature phone portion of the business was just recently sold off for $350 million. This practically means the company's smartphone business is wiped out already.
To clear things, according to The Verge, majority of the former Nokia employees are now no longer working for Microsoft. Satya Nadella, Microsoft's CEO, stated that they will continue to innovate across devices and on their cloud services across all mobile platforms. Furthermore, rumors suggest that Microsoft is planning a Surface branded phone for next year. Maybe, Microsoft's move now will be developing its Window Phones and Lumia models.
Moreover, despite Microsoft's decline of phone sales, many requests and demands come out. These demands are all about its phone platforms. Microsoft's Lumia 950 and 950 XL still are available.
The retrenchment of workers may sound so sad for the employer as well. Microsoft must have done something beneficial for the former workers. Well, that is part of the cycle. As long as Microsoft stands its ground, many workers will still gain from it.
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