Microsoft Cuts 7800 Jobs; Writes Off $7.6B Nokia Purchase

Microsoft recently announced that the company will be cutting 7,800 jobs as part of its writeoff of the $7.2Billion Nokia deal at $7.6B value. Which means that the writeoff amount is more than the purchase amount of Nokia, not to mention the fact that there is about $850 Million restructuring fee which will have to be paid on top of the $7.6 Billion.

The Microsoft CEO Memo

In a Memo circulated by Microsoft CEO Satya Nadella to Microsoft employees he stated that the company is going to focus on three segments, these are business, value and flagship phones. Although it is unclear as of the moment but it would seem that Microsoft is poised to reopen negotiations to partnering with other companies in order to help them in the widening of their distribution channels and bring to market their flagship devices. When Microsoft bought Nokia, it also acquired the latter’s primary distribution channels, but it seems that Microsoft sees more value in partnering with other companies as evidenced by the writeoff.

A Move To Android?

Rumors that Microsoft is also exploring the possibilities of using Android related Operating Systems in their devices became much stronger with the announcement of the writeoff. As of now we would have to wait on the Microsoft CEO’s move on how far he would intend to bring this restructuring process in order to achieve the goals that he intended for the company.

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