Microsoft admits that its deal with Nokia was a bad move. The technology giant confirmed on Wednesday that it would lay off over 7,800 employees worldwide over the next few months, the majority of which are based in its phone division. That is in addition to the 18,000 employees that Microsoft announced it would lay off last year.
Also, the company will also write off losses of roughly $7.6 billion for its acquisition of Nokia’s devices and services.
Around $9.5 billion was spent by Microsoft to buy Nokia’s smartphone business, reports Mashable.
Microsoft had closed the deal with Nokia only a year and a few months ago and the man behind this move was the company’s ex CEO Steve Ballmer. It was basically a strategy widely viewed as a last-ditch effort to help the company find footing for Windows phones to beat big competitors like Apple, Samsung and Google.
Commenting on the matter, Satya Nadella, CEO Microsoft, wrote to the employees, “I am committed to our first-party devices including phones.However, we need to focus our phone efforts in the near term while driving reinvention. We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem that includes our first-party device family.”