Wednesday, July 8, 2015

Microsoft Restructures Phone Business

Microsoft will record an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services (NDS) business in addition to a restructuring charge of approximately $750 million to $850 million.

The restructuring will result in the elimination of up to 7,800 jobs.

“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,” said Microsoft CEO Satya Nadella.“In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”

https://news.microsoft.com/2015/07/08/microsoft-announces-restructuring-of-phone-hardware-business/

In September 2013, Microsoft agreed to acquire Nokia’s Devices & Services business in a deal valued at EUR 5.44 billion (US$7.1 billion) in cash. The deal included all of the Mobile Phones and Smart Devices business units as well as Nokia's design team, operations including all Nokia Devices & Services production facilities, Devices & Services-related sales and marketing activities, and related support functions.

At closing, approximately 32,000 employees were transfered to Microsoft, including approximately 4,700 people in Finland.

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