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| Microsoft targets mobile phone unit as 7,800 more jobs go | Microsoft targets mobile phone unit as 7,800 more jobs go |
| (about 1 hour later) | |
| Microsoft is planning to cut 7,800 jobs as it reorganises its mobile phone unit. | |
| The move represents a massive shift in strategy for Microsoft since it purchased Nokia's mobile phone business for €5.44bn ($7.5bn; £4.5bn) last year. | |
| Microsoft axed 18,000 jobs from the unit last July - the deepest cuts in the company's history. | Microsoft axed 18,000 jobs from the unit last July - the deepest cuts in the company's history. |
| The technology giant will also write down the value of the Nokia deal by $7.6bn. | |
| Microsoft currently has about 118,000 employees around the world. | Microsoft currently has about 118,000 employees around the world. |
| In a statement, Microsoft said it would "restructure the company's phone hardware business to better focus and align resources". | |
| Although still strong in the software market for personal computers, the company is faces strong competition in the fight to establish its mobile handset operation. This market is dominated by devices powered by Google's Android system or Apple's iOS. | |
| A survey by research firm IDC said Microsoft's Windows was expected to capture just 3.2% of the global smartphone market this year. | |
| 'Reinvention' | |
| In a memo to staff, the company's chief executive Satya Nadella said: "I am committed to our first-party devices including phones. However, we need to focus our phone efforts in the near term while driving reinvention. | |
| "We are moving 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." | |
| Microsoft is due to start rolling out Windows 10 later this month, introducing a new operating system that can be used to power not only personal computers but a range of mobile devices. | |
| Last month, Microsoft announced a shakeup of top management including the departure of Stephen Elop, the former Nokia chief who joined the US tech company as part of the acquisition. |