Microsoft closes Finland Nokia phone unit


It’s a sad day for anyone that loves Nokia. Microsoft, which acquired Nokia in 2013, announced on Friday the company will close Nokia’s former mobile development unit in Salo, Finland, in addition to plans to cut 2,300 jobs as part of its plan to refocus the company and make it more profitable.

Microsoft to close Nokia site

According to Reuters however, two sites will stay open – one in Espoo and the other in Tempere. The decision though is still a blow to Finland, which at one time depended on Nokia as one of the driving forces behind its economy. Microsoft bought Nokia for around 49 billion in 2013, but by then Nokia has already lost a lot of its impetus to companies such as Samsung and Apple.

Microsoft revealed recently that it would suffer a $7.6 billion write-down for Nokia and reduce its workforce by 7,800 employees around the world – most of them related to the Nokia phone business.

The previous month, former Nokia CEO Stephen Elop (who has often been blamed for the company’s misfortunes) left Microsoft as the company sought to unify its operating system and device divisions with a new boss.

Around 18,000 Microsoft workers were laid off in 2013, with of them working in Nokia factory jobs.

Microsoft was planning to use Nokia to promote Windows Phone, but the operating system and the devices have not caught on in most countries around the world. With Windows 10 however, the company is hoping to renew its phone business by helping developers port Android and iOS software to Windows Phone. It also plans some first party smartphones that’s more in line with Google’s Nexus strategy. Google does not generate much revenue from Nexus, but the devices serve as a showcase for what Android products can do and offers a more pure Android experience without the bloatware installed by third parties or mobile phone companies.

SOURCE: Reuters.


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