Microsoft smartphone business section will streamline 1,850 employees


New York Times reported that Microsoft will further shrink the Windows phone business section due to the poor sales

Microsoft announced on Wednesday that it will streamline 1,850 employees, among 1,350 positions are from Finland where its Windows phone business originated. Microsoft claimed the streamline plan is a part of the $950 million cost-saving plan.

Terry Myerson, vice president of Microsoft Windows and Device department stated in the email which sent to its employees that the company made a hard decision and it will focus on the development of smart phone hardware.

It is a bad news to streamline workforce to Microsofts Windows phone business as there are not enough employees left in Windows phone business section.

When Microsoft acquired Nokia cellphone business section, about 25,000 employees joined Microsoft. With the poor sales of Windows phone, Microsoft cut jobs to save cost. It announced to lay off 18,000 employees in 2014, most of them were involved in Nokia acquisition. Microsoft further streamlined 7,800 employees last year to simplify the product of smart phone. Microsoft then had about 110,000 employees.

The sales of traditional cellphone have been affected by smartphones. Nokia has its own time, however, its advantage did not last for a long time compared with the rise of smartphones.

Even though Microsoft some smart phones got likes, however, the third party app developers assumed there were fewer attractions from the consumers.

Gartner reported that among the smartphone shipments in Q1 2015, there were 2.5% of smartphones using Microsoft OS. However, this figure dropped to under 1% in Q1 2016.

Last week, Nokia announced to authorize its licensing brand to Foxconn and HMD Global for the production of Nokia cellphones.

Satya Nadella promoted the R&D team to launch mobile applications based on iPhone and Android operating systems. Microsoft also released the universal Windows operating system that could be run on other devices. This could attract more developers to use its OS.

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