Microsoft has announced plans to restructure its phone business, cutting 7,800 jobs.
Mobile understands that some jobs cuts will take place in the UK phone division.
CEO Satya Nadella informed employees via email of the decision, explaining that the company is looking to grow away from being a standalone phone business.
He said: ‘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.’
The move will see the firm focus and align its resources with company strategy, following recent changes to its leadership and engineering teams. The announcement follows Microsoft Devices’s appointment of a new general manager, as it gears up for its Windows 10 release.
The company explained that its decision is expected to incur a restructuring charge of $750m to $850m. The firm will also face a $7.6bn charge relating to assets associated with its acquisition of Nokia Devices and Services.