Home > Uncategorized > Microsoft cutting up to 7,800 jobs, taking $7.6B charge on Nokia deal

Microsoft cutting up to 7,800 jobs, taking $7.6B charge on Nokia deal

SA
Jul 8 2015, 09:22 ET | About: Microsoft Corporation (MSFT) | By: Eric Jhonsa, SA News Editor Contact this editor with comments or a news tip
As suggested by an overnight NYT report, Microsoft’s (NASDAQ:MSFT) job cuts will primarily hit the company’s phone business. A $750M-$850M restructuring charge is expected. ~12,500 of the ~18,000 job cuts announced last year also hit the phone unit. (Press Release)Satya Nadella, who recently talked of making “tough choices”: “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. In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility … We’ll bring business customers the best management, security and productivity experiences they need; value phone buyers the communications services they want; and Windows fans the flagship devices they’ll love.”With Microsoft having paid $7.17B for Nokia’s Devices & Services unit and a related IP licensing deal ($9.4B including acquired cash), the company’s write-down exceeds its acquisition price. Last week, Microsoft struck deals to sell mapping imagery assets to Uber, and to offload its display ad ops to AOL. A $6.2B charge was taken in 2012 on the $6.3B acquisition of ad agency aQuantive.Microsoft is down fractionally premarket. Nasdaq futures are down 0.8%.Last year: Ballmer reportedly pushed for Nokia deal; Gates, Nadella initially opposed

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