Microsoft Corp. today announced plans for massive layoffs along with a $7.6 billion write-down. The Wall Street Journal reports that the company plans to cut as many as 7,800 jobs.
The write-down is related to Microsoft’s $9 billion acquisition of the Nokia handset business, which took place in 2013.
In an email to employees, CEO Satya Nadella said: “We are moving from a strategy to grow a stand-alone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family.”
The report notes that the Nokia deal was designed to move Microsoft into a stronger position in smartphones, but the firm’s Windows smartphones subsequently lost market share.
The WSJ reports: “In addition to the write-down, which will be booked in its fiscal fourth quarter, Microsoft said it also would take a restructuring charge of $750 million to $850 million. The company expects the moves to be ‘substantially complete’ by the end of the calendar year.”