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July 8, 2015

Hardware jobs rumoured to be in Microsoft’s firing line

The IT company is undertaking restructuring efforts.

By Alexander Sword

Microsoft is expected to announce a new round of job cuts as part of its cost-cutting strategy, according to sources inside the company.

The jobs will apparently affect people within its hardware group and the smartphone business that Microsoft acquired from Nokia in 2014.

The lay-offs, according to the New York Times, are in addition to the 18,000 job cuts announced a year ago.

This latest bout of restructuring follows an email in June from Satya Nadella to all employees announcing a range of leadership changes. Most crucially, Terry Myerson took charge of a new team, Windows and Devices Group, while head of Microsoft Devices Group Stephen Elop was ousted.

A memo released at the end of the last month, obtained by Geekwire, saw Nadella stating that the company would have to make "tough choices in areas where things are not working."

Presumably the pace of expansion of Windows Phone compared to its rivals Android and iOS has been inadequate. Microsoft’s most recent financial results, for Q3 2015, saw total revenues for devices and consumer licensing at $3,476 million, a fall from $4,597 year-on-year.

Microsoft declined to comment when contacted by CBR.

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