Microsoft lays off 2,850 more people in continued retreat from phones

Posted:
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Microsoft is getting rid of another 2,850 workers, continuing a turn away from its failed acquisition of Nokia's mobile phone business in 2014, which cost it over $7.2 billion plus later restructuring charges.




The cuts, announced in the company's latest annual report, are on top of 1,850 layoffs disclosed in May, Re/code reported. Roughly 900 people in the new group have already been notified.

With the latest job losses, Microsoft is believed to have nearly eliminated any trace of its Nokia takeover, which was intended to give the company a better chance in the smartphone market. While it still sells phones, these have taken a back seat to developing apps for iOS and Android, and of course its core businesses like Windows, Office, Xbox, and the cloud.

The Nokia takeover was one of Microsoft's last major initiatives under former CEO Steve Ballmer. The deal was closed under his successor, Satya Nadella, but Nadella quickly changed strategies, preferring the aforementioned multi-platform approach -- happy to support other companies' hardware so long as people are still using Microsoft products.

Nokia was once the global leader in phone sales, but was slow to adapt to the changes begun with Apple's iPhone in 2007. By the time it was collaborating with Microsoft on Windows phones in 2011, iOS and Android devices were already firmly in control of the market.
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Comments

  • Reply 1 of 32
    red oakred oak Posts: 612member
    MIcrosoft completely missed smartphones.  Truly remarkable how badly they screwed this up. I don't see how they are not F**** for the next 20 yrs
    sockrolidlostkiwiMacProlatifbpAni
  • Reply 2 of 32
    sockrolidsockrolid Posts: 2,788member
    So is Elop still around?
    Or did he get a golden parachute?
  • Reply 3 of 32
    red oak said:
    MIcrosoft completely missed smartphones.  Truly remarkable how badly they screwed this up. I don't see how they are not F**** for the next 20 yrs
    This is the same company that thought a sh*t brown brick was going to be an iPod killer.
    latifbplkruppration alcalibaconstangAni
  • Reply 4 of 32
    maestro64maestro64 Posts: 4,180member
    just goes to show, if you buy what you can not do yourself you will end up screwing your self. Every company who tried to buy themselves into a market has failed miserably at it.
    latifbpjbdragonbaconstang
  • Reply 5 of 32
    MacProMacPro Posts: 17,463member
    red oak said:
    MIcrosoft completely missed smartphones.  Truly remarkable how badly they screwed this up. I don't see how they are not F**** for the next 20 yrs
    How they sell computers let alone phones is beyond me.  I use Windows 10 a lot and it truly is awful compared to OS X ... oops pardon me, macOS. :smile: 
    edited July 2016 rotateleftbytelatifbpration alcaliwilliamlondonbaconstangAni
  • Reply 6 of 32
    volcanvolcan Posts: 1,640member
    maestro64 said:
    just goes to show, if you buy what you can not do yourself you will end up screwing your self. Every company who tried to buy themselves into a market has failed miserably at it.
    Yep, the 50 wealthiest people are mostly self made even if their business model is diversification by acquiring other companies - like Buffet for example. I think what killed Nokia and is about to kill Microsoft is their arrogance thinking that we're #1. Then when they realize someone is eating their lunch they start to scramble, but it is often too late. I hope Apple can avoid the same mistakes now that they are #1.
    latifbpdasanman69ration alcalipscooter63baconstang
  • Reply 7 of 32
    sflocalsflocal Posts: 4,152member
    It's actually a shame.  I would take a Windows phone over an Android phone any day.  At least Microsoft designed its own OS as apposed to Android's iOS knockoff.
    What's really sad is that Microsoft (Ballmer) really screwed the pooch on this opportunity.  They did a blunder as bad as PalmOS.  Honestly, I think they just don't have the talent needed to make a stellar mobile OS and ecosystem.  Being an engineer for Microsoft just isn't as glamorous to a potential candidate as it would be working for Apple or Google.

    Still, that being said... I guess Microsoft should be having one of these events for its phone business?

    ration alpscooter63
  • Reply 8 of 32
    sflocalsflocal Posts: 4,152member
    red oak said:
    MIcrosoft completely missed smartphones.  Truly remarkable how badly they screwed this up. I don't see how they are not F**** for the next 20 yrs
    How they sell computers let alone phones is beyond me.  I use Windows 10 a lot and it truly is awful compared to OS X ... oops pardon me, macOS. :smile: 
    I use windows 10 every day, usually as a virtual machine on my Mac.  True, it's horrible compared to OS X, but in terms of Windows itself, I personally think it's the best Microsoft OS since Windows 7.  Heck, even Windows 7 seems archaic to me when I use it from time-to-time.

    Windows 10 sucked big-time when it originally launched.  I tested it every day until I felt it was ready for the enterprise.  Up until recently, It was nowhere near ready for prime-time.  However, as Microsoft continued with their updates, most of our issues have disappeared.

    I just finished upgrading a corporate site from Windows 8.1 to Windows 10, all connected to a Windows 2012 Server AD domain.  They were running fine in Win 8.1, but the Metro interface was just a wretched piece of shit that no one wanted to use, and since Microsoft was going to start charging for Win10 upgrades, we felt it the time upgrade the workstations.  It all went without a hitch, the users are happier, and it has been pretty stable.  They made great strides with it.  

    When clients/friends/family I know that want to buy a non-Mac system, I have zero problem recommending Win10 now.  It's still a Windows system with all the PITA problems a Windows system is known for, but it is easier to use imho.

    What issues are you having with Win10?
  • Reply 9 of 32
    why-why- Posts: 305member
    noah fence, but what is this doing here? I feel like these articles are posted as an excuse to say "by contrast, Apple...."
    cali
  • Reply 10 of 32
    lkrupplkrupp Posts: 6,179member
    This is Ballmer’s legacy. What a turd he is.
    williamlondonbaconstang
  • Reply 11 of 32
    Rayz2016Rayz2016 Posts: 3,937member
    Which outfit said that Windows Phone would overtake the iPhone by 2016?

    calibaconstangAni
  • Reply 13 of 32
    hexclockhexclock Posts: 399member
    red oak said:
    MIcrosoft completely missed smartphones.  Truly remarkable how badly they screwed this up. I don't see how they are not F**** for the next 20 yrs
    If MIcrosoft would have had a modern, rewritten OS that was as flexible as OS X had become by 2007, they MAY have been able to make the jump, but they really didn't have that. They tried with Metro in Win 8 but it was a mess; poorly implemented. I thought after the Zune, there was nowhere to go but up for them. You're right, they screwed that up so bad. 
    caliAni
  • Reply 14 of 32
    why-why- Posts: 305member
    lkrupp said:
    This is Ballmer’s legacy. What a turd he is.

    that's quite a strong opinion to have of someone you've never met
  • Reply 15 of 32
    cnocbuicnocbui Posts: 3,613member
    I don't understand Nadella at all.  He talks multi-platform then deliberately destroys their capability in terms of phones, an entire platform, the ones where future developments and growth are most likely to be and arguable the most important platform.  I can't see how he isn't actually worse than Ballmer.

    How can you talk multi-platform and then get rid of one?

    Hey world, remember that upgrade path from 8.1 to 10 we promised you several times, well that isn't going to happen because I just fired everyone who works for us who worked on phones so you won't have to worry about future OS upgrades anymore because there won't be any; clever, non?  Now I have more good news for you - before I got rid of the phone guys, I had them run up a bunch of new phone models I think are really exciting..... hey!  Where are you all going?  Why are you leaving?  These are really good, and you won't have to bother with an OS upgrade ever again... Come back.... please... I don't understand...
    Rayz2016Ani
  • Reply 16 of 32
    larryalarrya Posts: 495member
    sflocal said:
    It's actually a shame.  I would take a Windows phone over an Android phone any day.  At least Microsoft designed its own OS as apposed to Android's iOS knockoff.
    What's really sad is that Microsoft (Ballmer) really screwed the pooch on this opportunity.  They did a blunder as bad as PalmOS.  Honestly, I think they just don't have the talent needed to make a stellar mobile OS and ecosystem.  Being an engineer for Microsoft just isn't as glamorous to a potential candidate as it would be working for Apple or Google.

    Still, that being said... I guess Microsoft should be having one of these events for its phone business?

    I was just wondering how many of the mock funeral employees have been let go. 
    cali
  • Reply 17 of 32
    calicali Posts: 3,495member
    Time for Apple to do some recruiting like they did with Blackberry.
  • Reply 18 of 32
    MacProMacPro Posts: 17,463member
    sflocal said:
    How they sell computers let alone phones is beyond me.  I use Windows 10 a lot and it truly is awful compared to OS X ... oops pardon me, macOS. smile 
    I use windows 10 every day, usually as a virtual machine on my Mac.  True, it's horrible compared to OS X, but in terms of Windows itself, I personally think it's the best Microsoft OS since Windows 7.  Heck, even Windows 7 seems archaic to me when I use it from time-to-time.

    Windows 10 sucked big-time when it originally launched.  I tested it every day until I felt it was ready for the enterprise.  Up until recently, It was nowhere near ready for prime-time.  However, as Microsoft continued with their updates, most of our issues have disappeared.

    I just finished upgrading a corporate site from Windows 8.1 to Windows 10, all connected to a Windows 2012 Server AD domain.  They were running fine in Win 8.1, but the Metro interface was just a wretched piece of shit that no one wanted to use, and since Microsoft was going to start charging for Win10 upgrades, we felt it the time upgrade the workstations.  It all went without a hitch, the users are happier, and it has been pretty stable.  They made great strides with it.  

    When clients/friends/family I know that want to buy a non-Mac system, I have zero problem recommending Win10 now.  It's still a Windows system with all the PITA problems a Windows system is known for, but it is easier to use imho.

    What issues are you having with Win10?
    Well you already said it "I use windows 10 every day, usually as a virtual machine on my Mac.  True, it's horrible compared to OS X, but in terms of Windows itself, I personally think it's the best Microsoft OS since Windows 7"

    I use VMs (Parallels and VMWare) but  mostly boot directly into external Windows SSDs from my Mac Pro (black tube) simply so I can use both GPUs with Catalyst something a VM can't do and I have to create external boot drives as Apple made the new Mac Pro's SSD boot drive too small. I'm a member of both Window's and Apple's developer groups so have the latest betas. I've used Apple's and Microsoft's OS since the late 1970's and I can't believe  there are still so many of the same dumb UI issues in MS.  Dialog boxes that you need to see hidden behind others.  Driver updates fighting with each other.  Any installation requires using 'advanced' just to avoid crap-ware or snooping   Click twice and open the same application twice (or more) .... I could go on.  I use both macOS Sierra, El Capitan and Windows 10 round the clock .... I'm just an OS junkie, I Iove them all, but Microsoft is just so far behind Apple it isn't even close. 

    The trick with 10 is to get your head around the new and pathetic security set up.  Create an alias of an app and set advanced settings to use as Admin. Also watch One Drive doesn't start doing its own thing without your consent.  But yes, 10 is the best so far without doubt.

    BTW, I also use Paragon's NTFS for Mac ($20) so I can do a ton of file housekeeping on my Windows drives from the Mac's Finder.  It is so much easier!  Not to mention mount multiple prime / active Windows volumes and partitions  to copy prorgams etc. between Windows boot disks.  Try that under Windows!
    edited July 2016 nolamacguy
  • Reply 19 of 32
    Rayz2016Rayz2016 Posts: 3,937member
    cali said:
    Time for Apple to do some recruiting like they did with Blackberry.
    Indeed.

    Some of the best engineers in existence work for Microsoft. People shouldn't mistake poor ,adage end for technical ineptitude. 

    I've been watching this train wreck for years and I still don't really understand how they failed so badly in the mobile space. 
  • Reply 20 of 32
    Rayz2016Rayz2016 Posts: 3,937member

    cnocbui said:
    I don't understand Nadella at all.  He talks multi-platform then deliberately destroys their capability in terms of phones, an entire platform, the ones where future developments and growth are most likely to be and arguable the most important platform.  I can't see how he isn't actually worse than Ballmer.

    How can you talk multi-platform and then get rid of one?

    Hey world, remember that upgrade path from 8.1 to 10 we promised you several times, well that isn't going to happen because I just fired everyone who works for us who worked on phones so you won't have to worry about future OS upgrades anymore because there won't be any; clever, non?  Now I have more good news for you - before I got rid of the phone guys, I had them run up a bunch of new phone models I think are really exciting..... hey!  Where are you all going?  Why are you leaving?  These are really good, and you won't have to bother with an OS upgrade ever again... Come back.... please... I don't understand...

    Hhmph.

    The last five years at Microsoft summarised into three paragraphs. Quite sad really.

    Nadella knows what he's doing; he just can't tell anybody yet. Microsoft is going all out cloud. They're settling back into a back-seat tech role where they can make money on services and subscriptions. It happens to all tech companies eventually. 

    And one of the early symptoms is when news of product launches is replaced by news of complex financial engineering. 
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