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Microsoft announces new job cuts

Microsoft cuts jobs in its phone-related departments
Microsoft changes focus
Satya Nadella unveils the company will lay off 7,800 employees and will also launch less Lumia phones in the future.

As Microsoft shifts its focus to an entire ecosystem instead of individual entities in charge of various markets, more jobs are being cut. After writing off about 18,000 employees in the last 12 months, the Redmond giant now announces plans to eliminate another 7,800 jobs, most of them in the phone business. 

According to the official press release, "the company will record an impairment charge of approximately $7.6 billion related to assets associated with the acquisition of the Nokia Devices and Services (NDS) business in addition to a restructuring charge of approximately $750 million to $850 million." 

Microsoft CEO Satya Nadella sent an email to employees that details these plans. "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," he writes. In the long run, the result will be "a more effective and focused phone portfolio" - so less Lumia devices from now on.

The changes mentioned in the statement should be fully completed by the end of this fiscal year. More details will come out with the fourth-quarter earnings announcement on July 21, as well as in the 2015 Annual Report on Form 10-K.

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Codrut Nistor, 2015-07- 8 (Update: 2015-07- 8)