Microsoft Shifting Focus Away from Smartphone Division
Microsoft is cutting nearly 3,000 more jobs over the next year, bringing its total planned layoffs to almost 5,000, or roughly 4% of its total workforce.
Most of the job cuts are in Europe, Microsoft says, and the majority of employees facing layoffs are in the company’s struggling smartphone division. Specifically, job cuts are occurring most rampantly in Finland, the headquarters of Nokia, which Microsoft—perhaps regrettably—acquired in 2014 to tackle Apple and Samsung in the smartphone market.
Cloud Pushes Microsoft Earnings Above Expectations, Stock Climbs
Microsoft had a strong last quarter, generating more than $22 billion in revenue during the quarter, thanks largely to a 102% revenue growth from Azure, the company’s cloud offering. But Windows Phone has been a drag on the company—smartphone sales slid 71%. It’s been estimated that Microsoft could save up to $800 million by simply shuttering the hardware division.
