Microsoft Lays Off Nokia Employees, Exits Consumer Phone Business

Discussion in 'iOS Blog Discussion' started by MacRumors, May 25, 2016.

  1. MacRumors macrumors bot

    MacRumors

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    Microsoft has laid off hundreds of employees tied to its smartphone business, as the company finally exits the consumer phone market and attempts to streamline its worldwide mobile division (via The Verge).

    The move will impact up to 1,850 jobs worldwide, said Microsoft's head of Windows and devices Terry Myerson, while up to 1,350 of the positions will be in Finland. The cuts are expected to be completed by the year's end.

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    The move signals the final nail in the coffin for Microsoft's Nokia business, which the company acquired under former CEO Steve Ballmer's management for $7.2 billion in 2014. Today's announcement will see $950 million written off, adding to the $7.6 billion the company wrote off last year when it cut 7,800 jobs to refocus its Windows Phone plans.

    Microsoft is now shorn of almost all of its 25,000 former Nokia employees, and will only retain a small number in R&D roles. Last week, the company announced it was selling off its feature phone business to FIH Mobile, a subsidiary of Foxconn, for $350 million.

    All indications point to an end of Microsoft's Lumia phones and a focus on a single Surface phone, with Myerson promising "great new devices" in an internal memo to employees, although he withheld any specific timeframe. The immediate focus for Microsoft and its new CEO, Satya Nadella, is more likely to remain on bringing the company's software and services to iOS and Android devices, rather than risk another consumer phone failure anytime soon.

    Microsoft has been scaling back its consumer phone ambitions ever since its ill-fated Nokia mobile acquisition two years ago. Nokia meanwhile has shown far loftier ambitions, last month announcing its acquisition of French health tracking company Withings for an estimated $192 million, as it seeks to expand into the consumer electronics market while maintaining its networking and commercial VR business.

    Article Link: Microsoft Lays Off Nokia Employees, Exits Consumer Phone Business
     
  2. maflynn Moderator

    maflynn

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    Can't say that its surprising. They just had to bite the bullet, everyone knew this anyways, Nadella saw that it was futile
     
  3. nookster macrumors regular

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    While it's been a long time coming, it'll still feel strange for Nokia not to be around. My 5100 and 3310 served me well.
     
  4. maflynn Moderator

    maflynn

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    I can't say that a Surface phone will be any more successful. I know the Surface Pro line is very successful, but will they be looking to run a full version of windows, which is what the SP run? If not, how different will the Surface phone be, from the old Lumia
     
  5. djcerla macrumors 68000

    djcerla

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  6. maflynn Moderator

    maflynn

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    Microsoft sold that non smartphone business and so you may yet see non smart Nokia phones in the wild
     
  7. iZac macrumors 68000

    iZac

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    They'll be back soon enough :)
     
  8. mejsric macrumors 6502a

    mejsric

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    Rest in peace Nokia.. You will be missed and remain in our hearts.
     
  9. Kajje macrumors 6502a

    Kajje

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    #9
    HP (and Palm till an extend), Blackberry, Sony / Ericsson (both and both combined), Nokia, Microsoft and Motorola.

    It's incredible that established, megacompanies with virtually unlimited resources, some known for changing the mobile landscape, some known for actually creating that same landscape, haven't been able to get it right.

    Samsung was making kitchen sinks, Apple was making niche desktop computers, Google was.... was making Google.

    People say it's all about money. But in this situation, was it?
     
  10. anthonylambert macrumors regular

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    It would be really interesting to see figures of how the downfall of Nokia has effected the Finnish GDP/finances.
     
  11. MrNomNoms macrumors 65816

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    Nadella was also one of the most vocal against the whole buy out of the Nokia handset division - given the fiasco that has unfolded it appears that Nokia got the better half of the deal given that it was able to offload an unprofitable division and focus on the most profitable sector which is cellular infrastructure, services and software. It'll be interesting to see how things turn out in the long term given that HP has taken up the Elite X3 and the rumours of the Surface Phone. It is all about the long game - too many are too quick to dismiss given that many dismissed Intel after the P4 fiasco and yet look at where we are today.
     
  12. vmachiel macrumors 68000

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    3210 Master race!
     
  13. Red Oak, May 25, 2016
    Last edited by a moderator: May 25, 2016

    Red Oak macrumors regular

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    PE Ratio of 39. LOL. I'd short the **** out of MSFT if the market was not so irrational
     
  14. Three141 macrumors 6502

    Three141

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    #14
    I'm still holding out for the Surface phone as I believe it will be a good device but if it is not released this year unfortunately I jump platforms, tough choice between Android or IOS though
     
  15. maflynn Moderator

    maflynn

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    Yeah, if Nokia as a company couldn't promote and sell Windows phones, what made MS think they could when that had zero experience in doing that.

    I see similar results with the Surface Phone if that rumor comes to fruition. I think the mobile market has solidified and matured that another platform has zero chance - at least in the consumer sector. They could possibly try to market the Surface Phone for business but even then businesses are enjoying the idea of their employees supplying their own smartphones
     
  16. dumastudetto macrumors 68030

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    Windows is a dead platform. It's time to move on! R.I.P. Microsoft we won't miss your blue screens of death.
    --- Post Merged, May 25, 2016 ---
    Ahh the premature iPhone funeral. ;) Memories....
     
  17. JosephAW macrumors 68020

    JosephAW

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    Why can't they just say we lost and move on instead of all this verbal gymnastics and semantics.
     
  18. Dilster3k macrumors 6502a

    Dilster3k

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    Wow remember when Nokia, Motorola & Blackberry used to rule the phone industry? They were everywhere, it's truly an end of an era.
     
  19. maflynn Moderator

    maflynn

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    All those examples have a common thread. The companies that failed (regardless of how big), failed to properly read the market as it evolved.
    --- Post Merged, May 25, 2016 ---
    Marketing, no one ever admits they failed any longer because that could affect the stock price.
     
  20. MartyBeez macrumors member

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    #20
    Does this mean that the whole Windows Phone business is over? Android and iOS is all that remains?
     
  21. 555gallardo macrumors regular

    555gallardo

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    #21
    Ah MS... All you had to do was to re-release Nokia 3310!
     
  22. samphoenix macrumors newbie

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    I believe there was an article on the Verge this week talking about Nokia planning to introduce a new mobile handset in partnership with another company. Apparently, they were waiting for the none compete clause to end
     
  23. Shirasaki macrumors 604

    Shirasaki

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    #23
    Without smartphone market, how Microsoft would gain market share in mobile market?
    Sure, market itself is saturated, but it is still growing, no?
    Anyway. People will remember what Nokia brought to us.
    A user need to buy a new phone JUST BECAUSE AT&T no longer supports 2G network, and the phone this user was using is Nokia 3310 (right?) That legendary device. Maybe that phone served him well over a decade.
     
  24. 2457282 Suspended

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    Agreed, before the iPhone I had an erikkson and then a string of nokia's. They were tough little phones. RIP
     
  25. Mr. Dee macrumors 68000

    Mr. Dee

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    Coming from a Windows centric background, even I saw the writing on the wall as far back as 2013 that this acquisition was going no where. The desperation was just out of control under Steve Ballmer's leadership after his failed attempts in the early smartphone race. He was so naïve for dismissing the iPhone back January 2007. Even I saw the iPhone as an immediate game changer when Steve demoed it at Macworld.

    Google saw it too and immediately reversed their plans. Steve Ballmer should have gathered team the same day and have what is now Windows Phone OS ready by at least fall of '08. They would have been a bit behind, but not by much. The market would have been likely split between Microsoft, Google and Apple. Anyway, I have moved on and I am enjoying my iPhone 6s. The fact that my iPhone 4s from 2011 which I use as an iPod can run iOS 9.3 while my Nokia Lumia 625 from 2013 is still stuck on Windows Phone OS 8.1 with mediocre apps just proves Microsoft still doesn't get mobile.
     

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