Microsoft Corp. today announced that they will restructure their phone hardware business to “better focus and align resources.”
The company additionally announced that this move included cutting 7,800 positions, primarily in their phone business. This announcement follows is aligned with Microsoft’s priorities which include changes to leadership, engineering teams as well as the company’s plans to transfer the imagery acquisition operations to Uber.
The plan going forward is to further invest in search as the core advertising technology and service.
Today’s plans were outlined in an email sent to Microsoft employees from CEO Satya Nadella.
“We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family,” Nadella said. “In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”
Microsoft Betting against smartphones
Writing in Wired, David Pierce said, “Microsoft is hoping the age of the smartphone is over, and it’s almost certainly wrong.”
Pierce added: “To be fair, Microsoft isn’t totally out of the phone game. Microsoft will probably make a Surface Phone, or something like it. Nadella even teases the idea in his memo, mentioning giving ‘Windows fans the flagship devices they’ll love.’”