Microsoft Culls 7,800 Jobs, With Most Tied To Its Phone Unit

Late last month, an email that Microsoft’s CEO Satya Nadella penned to his company leaked to the Web. In it, he laid-out a renewed focus for Microsoft, and mentioned that some important changes would have to be made. Today, we see what one of those important changes are: a culling of 7,800 jobs.

This is an unfortunate move, but not entirely an unexpected one. Most of the jobs relate to the company’s phone unit, and tying into this, Microsoft’s said it’s taking a $7.6 billion write-down on its purchase of Nokia.

In a company-wide email, Nadella states: “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.”

With as positive as the vibes have been surrounding Microsoft since Nadella stepped in as CEO early last year, it’s a bit sad to see the company’s phone business be dealt such a blow. The company certainly isn’t planning to get out of the market, but it has a gruelling up-hill climb to contend with. Its marketshare remains extremely low, despite its operating system being pretty compelling. But while that’s the case, it’s the hardware that’s lacking the kind of allure consumers demand.

While this is a grim move for Microsoft – 7,800 employees is no small matter – the company does have an extremely bright future in other areas. Its much-hyped Windows 10 operating system is set to launch later this month, and by all appearances, it’s going to be the best Windows OS launch perhaps ever, in terms of a smooth roll out and the slew of compelling reasons it gives consumers to upgrade (for free, even). Perhaps Windows 10 Mobile will help spring some more life into Microsoft’s smartphone business, but again, it’s the hardware – and consumer awareness – that really needs to improve.