WASHINGTON, May 25 (UPI) -- Microsoft will cut up to 1,850 jobs within about a year and will spend about $200 million in severance payments as the tech giant cuts back from the mobile phone business.
Up to 1,350 jobs will be cut at the Microsoft Mobile Oy facility in Finland, while another 500 jobs will be cut globally. Most job cuts will occur by the end of 2016. All cuts will occur by July 2017.
Microsoft on Wednesday said that the company is not giving up on mobile phones but is instead changing strategies -- possibly to gain customers in the business phone market.
"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," Microsoft CEO Satya Nadella said in a statement. "We will continue to innovate across devices and on our cloud services across all mobile platforms."
In summer 2015, Microsoft wrote down $7.6 billion related to its mobile-phone business and cut 7,800 jobs from those operations. Microsoft's mobile phone woes follow its $7.2 billion acquisition of Nokia, which Microsoft previously declared was a failure.