Microsoft Is Demolishing Its Smartphone Business

Illustration for article titled Microsoft Is Demolishing Its Smartphone Business

A week after selling off its feature phone division, Microsoft has announced that it’s also “streamlining” its smartphone hardware business, cutting 1,850 jobs in the process.


In a statement, Satya Nadella, CEO of Microsoft, explained that:

“We are focusing our phone efforts where we have differentiation — with enterprises that value security, manageability and our Continuum capability, and consumers who value the same. We will continue to innovate across devices and on our cloud services across all mobile platforms.”

The move will see 1,350 jobs lost at Microsoft Mobile Oy in Finland—formerly part of Nokia—as well as a 500 more lost globally. It’ll write off $950 million in the process.

It seems that Microsoft is reconsidering its flirtation with phone hardware, which started when it purchased Nokia’s phone division three years ago for $7.1 billion. That deal saw 32,000 Nokia employees join Microsoft. Its foray into creating its own smartphones, it’s fair to say, has been disastrous.

Recode published a leaked internal memo from Microsoft, in which Terry Myerson—Executive Vice President of the Windows and Devices Group—explains that it will continue to work on mobile. He doesn’t, however, suggest that the future involves any Microsoft-made smartphones.

[Microsoft via Recode]


Contributing Editor at Gizmodo. An ex-engineer writing about science and technology.



Microsoft is done.

The phone interface is terrible.

They are so busy fucking up the desktop interface that no one wants to upgrade from Windows 7. Its the interface idiots, put the old one back. Sure you can argue its better till you are blue in the face, but no one is upgrading for that reason.

Microsoft is so busy making things unnecessarily complicated that developers are flocking to Linux. All those servers that used to run Windows Server are moving to Linux. Especially since they had to re-write most of the code with the 64 bit only Server 2008/2012.

Also, Microsoft takes forever to close security loopholes.

The ribbon is STILL running people away from office, and they have been removing features since office 2003 instead of adding them so what justification do you have to upgrade?

Sell your Microsoft stock before it passes the event horizon.