Microsoft to cut up to 7,800 jobs, most in phone division

REDMOND, Wash., July 8 (UPI) -- Microsoft Corp. announced plans Wednesday to cut up to 7,800 positions and take a $7.6 billion accounting charge as a result of its acquisition of Nokia's smartphone business.

Amid its struggles to restructure its phone hardware business, Microsoft said the job cuts -- which constitute some six percent of its workforce -- would come mostly from its phone business division. Most of the cuts will be outside Microsoft's home base in Washington, including in Finland, where Nokia was created. As of late March, Microsoft had more than 118,000 employees.

Satya Nadella, who became Microsoft's chief executive early last year, said it would also take a restructuring charge of $750 million to $850 million associated with the Nokia acquisition.

"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," Nadella said in a written statement. "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."

Nadella has been hinting at cuts for months, sending a company wide email saying Microsoft would need to "make some tough choices in areas where things are not working and solve hard problems in ways that drive customer value."

Last year, Microsoft announced it would ax up to 18,000 employees after it acquired Nokia. Those layoffs are in addition to the 7,800 cuts.