Microsoft to Kill Off Nokia’s Feature Phones, Android SmartPhones

by Istvan Fekete on July 18, 2014

Following its April acquisition of Nokia, Microsoft has announced that it plans to cut up to 18,000 jobs globally this year. Since Microsoft has127,104 employees — Nokia staff included — this accounts for nearly a 15% cut to its workforce.

Most interestingly the cuts are coming from the Nokia Devices and Services unit it acquired recently for $7.2 billion. The company is now proceeding with 13,000 of the job cuts, and the majority will come in the next six months.

Some 12,500 of the cuts are coming from the Nokia unit — which means that Microsoft will cut about half of that unit’s workforce. The reaction from Finland came shortly after the announcement: politicians and workers’ leaders in the country reacted with anger at the news that 1,100 jobs in the country will be lost due to Microsoft’s restructuring plan.

So what’s happening? First of all, Microsoft plans to kill off Nokia’s feature phone arm. The Finnish phone manufacturer was renowned for this, but now that Microsoft is in charge it plans to phase them out over the next year and half.

The new focus is Windows Phone: Microsoft will try to tempt its installed base of feature and Symbian users over to Windows Phone. “Whereas successful hardware was the goal at Nokia; delighting our customers with Microsoft platforms, services, and applications through our hardware is our goal at Microsoft,” says Harlow.

But that’s not the only Nokia business Microsoft wants to liquidate. Another target is Nokia X Android phones: Microsoft intends to wind that business down and replace them with Windows Phone in the future.

Nokia X debuted earlier this year as a surprise move for everyone in the tech world and Microsoft has already announced its successor, the X2 just last month. This means don’t expect future Nokia X phones to run Android, but Windows Phone instead.

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Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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