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Microsoft to Cut Up to 7,800 Jobs, Mostly in Phone Unit


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Oh boy did I sit up when I read the headline. My first thought was that they were so close!


Being a Windows 8.1 Windows Nokia Lumia phone user, I was anxious but it seems the real bad news is for the Nokia and Lumia factory workers.




"The majority of the latest layoffs will be outside Microsoft’s home base around this city’s area, including in Finland, where Nokia originated. Nearly 25,000 employees joined Microsoft as a result of the deal. At the end of March, Microsoft had more than 118,000 employees globally.


The company’s retrenchment in smartphones comes as Mr. Nadella, who became chief executive last year, has pulled Microsoft back from initiatives begun by Mr. Ballmer.


Mr. Nadella sent a companywide email in late June intended to rally employees for the coming year. He also warned in the message that Microsoft would need to “make some tough choices in areas where things are not working and solve hard problems in ways that drive customer value.”


Also in June, Microsoft said it was selling its online display advertising business to AOL, as Microsoft exited a business for which it once had high hopes. In 2012, the company signaled how its ambitions in the area had sputtered when it took a $6.2 billion accounting charge related to its acquisition of aQuantive, an online advertising company.

Microsoft has continued to lose market share in smartphones since acquiring Nokia’s handset business. The company has failed to turn the Windows Phone operating system, which runs on its handsets, into a vibrant alternative to the two leading mobile platforms, iOS from Apple and Android from Google.


Last month, the company said that Stephen Elop, the former chief executive of Nokia who became a senior Microsoft executive after the acquisition, overseeing its devices business, would leave Microsoft.


Rather than catering to all smartphone shoppers, Microsoft said it would narrow its focus to three types of customers: business users who want strong management, security and productivity apps; buyers looking for inexpensive phones; and Windows fans.


Microsoft said it would take the $7.6 billion charge during its fourth fiscal quarter, which ended June 30, and that it would be a noncash charge reflecting the declining performance of the smartphone business, which continued to lose money and market share. Microsoft said it would also take a cash restructuring charge of $750 million to $850 million related to the layoffs.


Microsoft hopes that having a common foundation among those devices will attract more interest from software developers, which could make its smartphones more appealing to consumers.


“They saved it long enough that they could have another go,” Mr. Dawson said. “But I don’t think it’s going to work.”


The rest of that article has a lot more and links here: http://www.nytimes.com/2015/07/09/technology/microsoft-layoffs.html?emc=edit_tu_20150708&nl=technology&nlid=36852580&_r=0


I hope it does work, Ballmer was too late and again a better CEO at the helm is taking the heat for trimming up the MS boat so it can plane again on top.


Apple contracts with the manufacturers in Taiwan and China to build their phones, MS can too. But Ballmer was again too late and too unimaginative and cost many folks their livelihood with earlier layoffs here and now the last of the Fins from the original Nokia are looking for work.


There seems a glimmer of hope. But let's remember that as biz goes so goes their employees.


Jack that means your Windows Phablet isn't going to happen. And that I will see a Windows Phone 10. Will it go the way of another Ballmer Goof, the RT tablets and computers. He did what Google and others did with Chromebooks which I know will go the way of the RT ecosystem.


He may be the best, or the worst, for us Microsofties and MS. Nothing in between. Bold moves. I hope they pan out. If forced, I can go back to another OS. It won't be Google's Android.


It will not much affect me as I foresee them gaining ground in the low end and the biz markets. Once they have a unified ecosphere, the tides may turn. In any event I give it a year to go one way or the other. If they go completely out of the phone biz, it is iPhone here I come. So a minor glitch for us in the future or not.


Disclaimer: No skies have been caused to fall in this post. Should you think your sky is falling, please do not respond but dial 911 and tell them your emergency.

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Love my iPhone 6 Plus. :D First Smart phone I ever owned. I got the Sprint $50 plan with unlimited phone, text and data plan.

I only had one place on my summer trip that data wasn't available. I went out and bought a Straightalk Verizon 1GB card. And it didn't have service either. :(

But my DataStorm had no problem with Internet service. I was trying to wean off the DataStorm but guess I will keep it for a while.


I did put it on vacation when I got to my summer spot with good FREE WiFi service


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So what do you think? Was it a mistake to get the GD a Lumia 640 with Windows 8.1 and planning to upgrade to Win 10? Should I send it back, is the Window 10 mobile OS going away?



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Nope not yet. Wait a bit as the system is in the phone and will work fine. They are not quitting on Windows Phone and will continue to support it for the foreseeable future as of today.


Biker that is waaayyyy down the road and only if no Windows phone support. Remember we are all getting Windows 10 first and Cortana on all systems as well.

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