Microsoft announced, last week, plans to lay off as many as 1,850 staff members in an effort to “streamline” business. This will result in a $950 million charge, including $200 million in severance payments.
This news follows the announcement that the tech giant is selling its feature phone business for $350 million. Both of these decisions are attributed to a new focus on developing enterprise and other niche market areas.
“We are focusing our phone efforts where we have differentiation — with enterprises that value security, manageability and our Continuum capability, and consumers who value the same,” Satya Nadella, chief executive officer, explained.
This news follows a similar decision from Intel last month. Intel recently announced plans to lay off 11 percent of their workforce to focus on developing more cloud computing and IoT solutions.