Here we go again: The Microsoft layoffs (fiscal 2016 edition) are here, and they are significant. The company  MSFT 0.41%  plans to cut up to 7,800 positions primarily in its phone business and will record an impairment charge of about $7.6 billion related to acquisition of the Nokia devices and services business. That comes in addition to a restructuring charge of between $750 million and $850 million.

Not so long ago, Microsoft CEO Satya Nadella warned oftough choices ahead. The fact that most of the cuts come from the company’s phone business is not a surprise. In a recent reorganization, the company’s phone business wasmerged into the overall Windows-and-devices group led by Terry Myerson. Phone chief Stephen Elop left the company.

From the company statement:

Based on the new plans, the future prospects for the Phone Hardware segment are below original expectations. Accordingly, the company concluded that an impairment adjustment of its Phone Hardware segment assets and goodwill of approximately $7.6 billion is required.

The restructuring costs will cover the costs of layoffs; the impairment charge has to do with how the company accounts for the worth of Nokia from an accounting perspective and does not mean that Microsoft will lose $7.6 million from its balance sheet, a spokesman said. Basically, the future performance of Nokia is not what Microsoft anticipated, which in turn led restructuring and sales of some parts of that business. More details will be forthcoming in Microsoft’s 10K filing on July 21.

The spokesman added that the cuts are all about focusing the company on core businesses, which is why it just sold some of its mapping business and ad sales business to AOL. “We want to concentrate on where we can add value,” he told Fortune.

The news comes about one year after Microsoft launched its largest-ever layoffs: 18,000. Microsoft’s last published headcount number from June of last year was 128,000; the pre-layoff count this spring was likely around 118,000.


Source: https://fortune.com/2015/07/08/microsoft-layoffs/ 

Xbox Two doomed...

Nokia is the new Zune, how suprising.
I hope these guys find a new job quick.

That's a ton of jobs, everywhere layoffs and bad news.

I wonder how they will look at xbox if they are so cut happy. I could see it being merged into windows and devices being restructured into a more pc software less hardware type a product.

Damn, that's a lot of people left without jobs. They make all that profit yet continue to cut people loose. That's kind of messed up. All so the rich can get richer.

"plans to cut up to 7,800 positions primarily in its phone business and will record an impairment charge of about $7.6 billion related to acquisition of the Nokia devices and services business."

Welp saw that coming

Will the impairment charge be reflected in their results for the Apr-Jun quarter or in the next one?

whelp.

They really wasted their money on Nokia and Skype.

why cant the EU not sue MS and why is the european media and public looking away all of the sudden? first they buy a european Brand for smartphones and then they lay off the people in Finland.
Werent people in europe upset when BenQ did the same thing with buying up SIEMENSs phone division and laying people off? So people/media give US companies a free pass here?