Finance

Microsoft Eliminates 18000 Jobs, Nokia Devices No Longer Support Android

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Nokia devices will no longer support Android, Microsoft CEO Satya Nadella announced Thursday, Forbes reported.

In a company-wide email that announced 18,000 jobs -- 14 percent of its workforce -- will be "eliminated," Nadella announced a change in direction that will integrate the Nokia Devices and Services team and have Microsoft focus on "breakthrough innovation" for future handsets.

Going forward, the tech giant plans on shifting "select" Nokia X product designs to become Lumia products running Windows. Nadella said this will build on Microsoft's success in the affordable smartphone space and will align "with our focus on Windows Universal Apps."

"We will simplify the way we work to drive greater accountability, become more agile and move faster," Nadella said. "We plan to have fewer layers of management, both top down and sideways, to accelerate the flow of information and decision making."

Nearly 12,500 of the layoffs will come from the Nokia phone business, halving the size of the newly acquired Nokia phone business.

The acquisition of the mobile company in April swelled Microsoft's payroll from 99,000 to 127,000 employees worldwide, the Los Angeles Times reported. Factory and professional jobs will be eliminated.

Stephen Elop, Microsoft's executive vice president, explains the supporting the Android ecosystem did not align with Microsoft's vision.

"We will be particularly focused on making the market for Windows Phone. In the near term, we plan to drive Windows Phone volume by targeting the more affordable smartphone segments, which are the fastest growing segments of the market, with Lumia," Elop wrote in an email to his employers. "In addition to the portfolio already planned, we plan to deliver additional lower-cost Lumia devices by shifting select future Nokia X designs and products to Windows Phone devices. We expect to make this shift immediately while continuing to sell and support existing Nokia X products."

According to Forbes, it looks like the tech giant is trying to create a unique "one OS" experience across all devices, "rather than confuse the brand by adding its rival, Android, to the mix."

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