Microsoft Corp. today announced plans to restructure the company’s phone hardware business.
Microsoft also announced the reduction of up to 7,800 positions, primarily in the phone business. As a result, 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 will record a charge in the fourth quarter of fiscal 2015 for the impairment of assets and goodwill in its Phone Hardware segment, related to the NDS business. This charge has no impact on cash flow from operations and is nondeductible for income tax purposes. Based on the new plans, the future prospects for the Phone Hardware segment are below original expectations. Accordingly, the company concluded that an impairment adjustment of its Phone Hardware segment assets and goodwill of approximately $7.6 billion is required.
The actions associated with today’s announcement are expected to be substantially complete by the end of the calendar year and fully completed by the end of the company’s fiscal year.
Source: Beleaguered Microsoft
MacDailyNews Take:
Windows Phone had a chance. Its chance was based on the court systems of the world working in a timely fashion to address patent infringement issues and thereby drive up the cost of Android to the point where it became cheaper for phone assemblers to adopt and push Windows Phone to those too ignorant, stupid, and/or cheap to get a real iPhone. Developers would follow. However, at this late date and getting later every second, Windows Phone may not survive, given the glacial pace and/or incompetency of legal “systems” around the world. Timeliness is everything in tech. Missed opportunities are gone forever.
[Regardless], that two of the world’s most inept CEOs, Microsoft’s Steve Ballmer and Nokia’s Stephen Elop, couldn’t succeed is hardly surprising. — MacDailyNews, July 18, 2013
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Steve Jobs killed Nokia long before Elop got there to pull the plug. — MacDailyNews, September 3, 2013
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Apple’s iPhone is a “niche product.” — Nokia’s then-CEO Olli-Pekka Kallasvuo, April 17, 2008
Olli-Pekka is currently “spending time with his family.”
SEE ALSO:
Major job cuts expected at beleaguered Microsoft – July 8, 2015
Satya Nadella? Seriously, Microsoft? – January 31, 2014Beleaguered Nokia to sell handset business to Microsoft for $7.2 billion – September 3, 2013
[Thanks to MacDailyNews Reader “Edward W.” for the heads up.]
