Nokia X Android project killed, Microsoft now focused on Windows Phone
Microsoft announced today its largest workforce cut ever and some future plans for the excising mobile platforms – Nokia X and Windows Phone.
Around 18 000 employees will lose their jobs by the end of 2015, with most of them being former Nokia stuff. The majority of them will be informed in the next 6 months, according to the memo. The job cuts account for around 14% of the total workforce while Microsoft now has 127 104 employees. By doing this, Redmond is trying to optimize stuff and decrease operational costs.
At the same time, Nokia’s Android project will be abandoned and Microsoft will focus its efforts only on Lumia devices. Microsoft is planning to increase its offerings in the low-end segment, and selected Nokia X designs will be shifted to Windows Phone. Microsoft’s designing efforts will be concentrated in Finland – in Salo (for premium Lumias) and Tampere (for low-end models).
Microsoft believes that Windows Phone will increase its market share and future budget devices are important part of the overall strategy. Even today, Lumia 520 is the best selling Windows Phone so this fast growing segment cannot be neglected.