As a part of Microsoft’s major organizational change in the coming days, the company has planned to layoff 18000 employees, end the Nokia X series, the Nokia Asha 40 series smartphones, Nokia McLaren and other budget phones.
After Satya Nadella took over Steve Balmer as CEO there are some major changes happening in the company. The termination of the Nokia X series smartphone was expected, though many users did not expect the discontinuation of the popular budget phones. The company’s move indicates that it is keen to develop Microsoft devices to take on Android.
Stephen Elop, Executive VP for Microsoft Devices and services said in a statement:
“It is particularly important to recognize that the role of phones within Microsoft is different from it was within Nokia. Whereas the hardware business of phones within Nokia was an end unto itself, within Microsoft all our devices are intended to embody the finest of Microsoft digital work and digital life experiences.”
Microsoft decided to cancel the development of McLaren, the 3D touch smartphone due to cost factors and response of developers to the early test builds of the smartphone. The Nokia McLaren was slated to be the company’s flagship smartphone and first Lumia device with 3D technology. However, Microsoft is expected to use the 3D technology in upcoming devices.
Microsoft will also reduce developer engagement related to Nokia X series, Asha 40 series and other phones and transfer them to maintenance mode. The company will provide services that would be eventually phased out by the end of the year. However, Microsoft will no longer offer support or features to the mobile phones due to their shift to maintenance mode.
Microsoft’s move to kill budget phones has not gone down well with consumers and has been a main source of revenue for the company. The smartphone maker can only rope in users if Windows phones with a budget pricing is launched and consumers might even opt for lower-priced Android smartphones.
On 17th July, Microsoft declared that it was ready to cut as many as 18,000 jobs, blaming it on the restructuring of the company. In this heist, there is a little chance that Xbox Entertainment Studio would survive. The Xbox platform for making Xbox Originals TV programming has already been shut down. The news was confirmed from Phil Spencer, who is a part of Xbox.
Earlier, In a 3,105-words memo written and distributed on last Friday to all its employees, Microsoft’s new CEO mentioned that the company will be focusing more on the cloud, mobile and productivity instead of devices and services. He also pointed that the company will witness big organizational changes as well.
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