AfterDawn: News

Microsoft takes $7.6 billion loss on Nokia acquisition, will layoff 7800 more employees

Admitting that the acquisition was a brutal mistake, Microsoft has written off its entire acquisition of Nokia's handset business, taking a $7.6 billion loss in less than two years.

Additionally, the company will cut 7800 jobs from its phone business, with a lot of former Nokia execs getting laid off.



New Microsoft CEO Satya Nadella confirmed what everyone already knew - that former CEO Steve Ballmer made a horrible purchase - and it is clear that Windows Phone is still relevant at Microsoft, but not necessarily a huge priority.

"We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family," Microsoft CEO Satya Nadella said. "In the near-term, we'll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility."

In the past few weeks, former Nokia CEO Stephen Elop has left Microsoft as has phones boss Jo Harlow so it appears that Microsoft has finally conceded that the smartphone industry is a duopoly.

Source:
Microsoft

Written by: Andre Yoskowitz @ 9 Jul 2015 22:16

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• 7 comments

• SomeBozo

  Always thought Blamer was a mistake, finally just about done with cleaning up his mistakes.
  

  10.7.2015 12:07 #1

• hearme0

  This just pisses me off to no F'ing end!!!!
  
  Yet another American biz engaging another biz to take over or buy on a whim........like Comcast is about to do with their video service in an effort to compete with YouTube. Seriously????? That would be like another DVD rental company coming in to compete with RedBox. The market is done, has a solution, doesn't need another. PERIOD!
  
  Yet these companies flagrantly waste a shitload of money on total larks that they kinda have to know somewhat will likely fail.
  
  Why it pisses me off????
  
  
  Because all I freaking need is a quick 30 grand to solve every money-related concern in my life much less a lark that costs 7.6 BILLION.

  10.7.2015 12:30 #2

• ivymike

  Comcast's video service will fail miserably. Just watch. No one likes Comca$t.
  

  10.7.2015 15:39 #3

• SProdigy

  Originally posted by hearme0: Because all I freaking need is a quick 30 grand to solve every money-related concern in my life much less a lark that costs 7.6 BILLION.
  ABSOLUTELY!
  
  Not to mention the 7800 people out of a job now on top of that! Leave well enough alone!

  10.7.2015 17:04 #4

• greatdeceiver

  It will be only a matter of time before microsoft will declare 11
  bankruptcy and go out of business.
  
  Bad business practices can come back
  and bite you in the butt.
  
  This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership.
  
  A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time ( how to be a deadbeat and avoid thier creditors or be clever enough or devious enough to get a taxpayer paid bailout ).
  
  People in business or individuals can also seek relief in chapter 11.
  

  11.7.2015 01:11 #5

• SomeBozo

  Originally posted by greatdeceiver: It will be only a matter of time before microsoft will declare 11
  bankruptcy and go out of business.
  
  Bad business practices can come back
  and bite you in the butt. I'd probably disagree about any form for bankruptcy, income of 86 Billion, gross margin of 60 Billion, checking on hand in the bank of 92 Billion, while sure they made a few blunders, it's better to admit what is wrong and cut it. Sure 8 Billion is a lot of money to many, in contrast to their other numbers and given it isn't "major". From a company perspective, better to cut loses while you can and still very profitable... Not to mention the money by cutting the people's job, salary, and benefits...
  
  That said, like I mentioned with a friend, it seems really F'ed up that a company can on a whim buy up another which I think they had no right or reason to do so, find out they don't have what is needed to really drive and run the business, only to kill off the company and make 7800 innocent hard working people lose all their hard work over years and be thrown under the bus and loss their jobs. Something here just seems kind of immoral how a company can play other other people's lives. I can't help but think of the (avg family size 3 in Europe) the 7800*3, or the 24000 people directly affected by this, don't forget the ancillary company/people that will be affected too that employed people to build and support Nokia's phones, sales/retail people.
  
  I would think, be it 7800/24000 people direct affected, Steve Ballmer should help give back out of his pocket, not like he couldn't and still have plenty left over. He does have 22Billion, if he gave the entire 8 Billion, he would still have plenty more left over...
  
  
  

  11.7.2015 12:00 #6

• Bozobub

  You have a good point, SomeBozo, but think of it this way: You cannot buy what isn't for sale.
  
  No one forced stockholders to sell their stocks to M$.

  12.7.2015 11:28 #7