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Microsoft Explains New Strategy amid Job Cuts

News by admin on Wednesday July 08, 2015.

microsoft news · windows phone news · industry news · admin

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In the wake of Microsoft's announcement of over 7000 job cuts and a write off of $7.8 billion the company's CEO has sent an email to employees explaining Redmond's new strategy moving forward. Satya Nadella detailed how the company is deciding to move away from the idea of building a full smartphone company and instead focusing on key devices that best show the Windows platform.

Nadella described it as a "fundamental restructuring" of the company's phone business, while he also added that much of the job cuts indeed come from the smartphone business. He described how Microsoft is moving away "from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem that includes our first-party device family."

It is a tactic Nadella revealed when he took the CEO role two years ago and since he has added subtle changes. The lack of overall sales in the mobile market has pushed the new strategy through, even if it is at the expense of thousands of jobs. Microsoft's new hardware strategy now looks like this:

Budget - Affordable devices for users all over the world that offer "the communications services they want," something the Lumia division already excels at.

Business - Devices that tie into Microsoft's Windows software and its various services for enterprise, such as Office and Skype. The company wants to offer "the best management, security and productivity experiences"

Flagship - Microsoft has yet to launch a flagship smartphone, something the company will change with its new strategy, and Nadella says Windows fans will love the company's upcoming flagship smartphones.

Software - All of Microsoft's hardware output will be to show off the Windows platform and to bring a unifying experience to the user.

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