Microsoft said last year that that it would lay off 18,000 people but, according to the New York Times, more cuts will come in both the hardware division and the smartphone business it bought from Nokia last year.
Newly fledged CEO Satya Nadella has said in the last few months to Microsoft employees that “tough choices” had to made in several divisions.
Rather like Intel, Microsoft has for years struggled to make a dent in the smartphone business and last year’s buy of Nokia’s smartphone unit for over $7 billion doesn’t seem to have made much of a difference to its tiny market share.
But Microsoft cannot lose face by exiting the smartphone business completely. That’s a component of its strategy to launch Windows 10 on devices including PCs, tablets and telephones.
The New York Times added that Microsoft may well seek to write off a large proportion of its Nokia buy in the buildup to its next financial earnings report.