Microsoft CEO, Satya Nadella, appears to be considering another round of layoffs. Like before, this would target the underperforming hardware division; which comprises mainly ex-Nokia staff who joined the company under previous CEO Steve Ballmer.
Microsoft will be taking a $7.6 billion dollars (about RM28.9 billion) “impairment charge” on the acquisition of Nokia’s hardware division. This could be seen as the company admitting that it was a terrible idea to add Nokia’s assets to the company, and is performing a complete restructuring of its phone business. This comes shortly after former Nokia CEO Stephen Elop left the company; supposedly to retire, although many believe that he was forced out by Nadella.
It appears that Nadella is slowly cleaning up after Ballmer’s departure, and has been working to reverse many decisions made by his predecessor. Under the new leadership, Microsoft has taken on a more inclusive development policy and has been making more of its services available on more platforms like Android and iOS. The new strategy has been well received by the public, and has done quite a bit to turn the company’s image around.
Despite the downsizing of the phone business, Nadella has emphasised that it is still committed to making smartphones; although there is little said about what the new devices will be like. Microsoft’s phone market share has not been doing well, despite gaining traction in countries like India. This could be chalked up to not having a new flagship model to compete with the likes of Samsung and Apple, but it is likely that the company is waiting for Windows 10 to make any announcements.
[Source: Ars Technica]