Microsoft is scaling back its smartphone business, cuts 1,850 jobs

A few days after selling Nokia's feature phone business, Microsoft has now announced that it will be scaling back its smartphone business, cutting another 1,850 jobs, which potentially means that it will exit smartphone market.

Out of the 1,850 job cuts, 1,350 are from Microsoft Mobile division in Finland and up to 500 are fromt the global smartphone business. As a result of the layoffs, Microsoft will record restructuring charge of approximately $950 million, of which approx. $200 million will be used for severance payments. With the announcement Microsoft is shuttering what is left of the phone business it bought from Nokia in 2014.

The job cuts are expected to complete by the end of the calendar year, and fully completed by July 2017.

In recent times, Microsoft has shifted its tactics, focusing on bringing its apps and productivity services to Android and iOS platform, instead of competing with them. Microsoft said that it will continue offering it services to other platforms.

That being said, Microsoft is not completely out of the phone business. Terry Myerson, Windows and Devices unit head said that Microsoft will continue and support current Lumia devices, and OEM partner phones, and develop new device (Surface Phone?).

The news comes days after Microsoft sold Nokia's feature phone business to FIH Mobile, a subsidary of Foxconn for $350 million. At the same time, Nokia confirmed that it will return to the mobile and tablet market by licensing its brand to HMD, a Finland-based company to make devices. 

Via