Microsoft could lay off 1,850 to streamline smartphone business

Microsoft will let go of up to 1,850 employees in an attempt to streamline its smartphone business. 

The restructure will cost approximately $950 million, with around $200 million expected to be dished out in the form of severance payments. 

Microsoft CEO Satya Nadella hinted at Microsoft’s desire to streamline its mobile operations in July last year, explaining the company would cut down on the number of devices it releases in the hopes of encouraging devs to create universal apps compatible with the entire Windows portfolio, including Xbox. 

The company says its Microsoft Mobile Oy manufacturing wing in Finland will be hit hardest, with around 1,350 jobs due to be cut in the region. 

“We are focusing our phone efforts where we have differentiation — with enterprises that value security, manageability and our Continuum capability, and consumers who value the same,” said Nadella.

“We will continue to innovate across devices and on our cloud services across all mobile platforms.”

At the time, Windows Phone was flagging, and held just a 3 percent share of the mobile market.

"The reason why anybody would want to write universal apps is not because of our three percent share in phones. It's because a billion consumers are going to have a Start Menu, which is going to have your app," Nadella said.

"You start the journey there and take them to multiple places. Their app can go to the phone. They can go to HoloLens. They can go to Xbox.

"If you come to Windows, you are going to be on the phone, too. Even if you want to come to Windows because of HoloLens, you want to come to it because of Xbox, you want to come to the desktop, all those get you to the phone."