Microsoft Calling Down Consumer Phone Division, Layoffs Likely

By Snooky Grawls , Updated May 26, 2016 06:08 AM EDT
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Microsoft is facing a dim future in the consumer phone segment and based on recent events, it may be eventually shelved for now. The next question to that is whether Microsoft will ever consider a return to the niche, though most believe that such will come from a much rumored Surface Phone even if the chances are slim.

A memorandum from Terry Myerson, Windows and Devices unit head, broke the bad news to Microsoft employees which stated that the company was scaling back ‘but we’re not out’. The memo sounded broad but once placed along with other developments, things are not looking too good for about 1,850 employees.

Falling Market Share

With Microsoft recently seeing its market share fall below 1%, things seem to be falling apart. Aside from that, the company has no new product to look forward to plus the fact they recently sold their Nokia feature phone division to a subsidiary of Foxconn. That move was already seen as a red flag and the latest move has been somehow tied up to that.

Much of the developments as of late have somehow negated the plans Microsoft back in the Summer. This included the company focusing on entry-level devices which have been now partially abandoned.

Can the Surface Phone help?

So where does this the rumored Surface Phone? It is likely that Microsoft may come out with a mobile device to compliment its tablet and laptop roster though it is not expected to create a stir in the mobile phone segment.

1,850 jobs worldwide will be affected by the recent developments with 1,350 workers from Finland. Along with that comes the monetary value of almost a billion dollars to cover Microsoft’s exiting the business, estimated to be about $950 million.

Aside from that, the company plans to continue its focus on developing applications and continued support for their Windows phones.

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