Microsoft is withdrawing from the smartphone market

Microsoft Corp. It announced further layoffs in the smartphone division, just two years after its acquisition of Nokia mobile phones, which was an unfortunate attempt to defeat market leaders Apple and Samsung.

The American company has announced that it will release 1 850 people, mainly in Finland, and will write a $ 950 million write-down on smartphones. No information is provided as to how many people are currently employed in the department.

A Finnish trade union spokesman told Reuters that the redundancies ended up in Microsoft’s work on new phones.

“In my opinion, Windows 10 will be the operating system, but no new phones will appear,” Kalle Kiili said.

In a statement, Microsoft announced that it will continue to work on the Windows 10 platform and maintain the production of Lumia smartphones, but has not been informed whether new Windows phones will be released.

Microsoft bought the $ 7.2 billion Nokia cell phone division in 2014, but the company failed to rebuild this portion of its business and announced a write-off of $ 7.5 billion and release of 7 800 people last year.

In the first quarter of this year, the share of Windows smartphones in the global market fell below one percent, according to Gartner.

At the beginning of May, Microsoft sold its simpler and cheaper phones for $ 350 million.

The company has announced that it will likely release 1,300 people in the Finnish mobile division and will liquidate R & D in the country. There are also no additional details provided that in other countries the redundancies will cover 500 people.

“We are concentrating on working on a phone that distinguishes us,” said President Satya Nadella in a statement. – We will continue to innovate in devices and develop cloud services across all mobile platforms. ”

In 2008, Nokia dominated about 40 percent of the global mobile industry, and late in the year it lost out to the development of touch screen smartphones.

As a result, Nokia and Microsoft have released thousands of employees in Finland in ten years, and the lack of other jobs has become the main reason for the current economic stagnation in the country.

We have a very difficult situation right now … We need to quickly create new jobs, “said Minister of Economy Olli Rehn.

Nokia, which is concentrating its efforts on the supply of telecommunications networks, said last week it would release about 1,000 people in Finland following the acquisition of its French-American rival Alcatel-Lucent.