Acquisition of Nokia didn’t prove to be rewarding and now Microsoft has to pay the price.
When Microsoft acquired Nokia, it was perceived that the brand will be born anew under the new management and will come shoulder to shoulder against the giants like Apple and Samsung.
However, things haven’t panned out as Microsoft would have hoped. Today, CEO of Microsoft Satya Nadella revealed that the company is looking to change its mobile phone business, and this is a change that includes laying off up to 7800 employees, mostly related to company’s mobile phone business.
The employees at Microsoft received following email by the current CEO today, who assured that the phone business will continue on to grow but with a different strategy:
“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. In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.
I don’t take changes in plans like these lightly, given that they affect the lives of people who have made an impact at Microsoft. We are deeply committed to helping our team members through these transitions.”
This move is a clear indication that the multibillion dollar deal with Nokia was nothing short of a disaster. However, Microsoft is a big company and possesses the potential to comeback strongly from a setback like this.
Image Courtesy: itpro.co.uk