Microsoft cuts 7,800 jobs

Microsoft announced another round of layoffs Wednesday, cutting another 7,800 jobs just one year after laying off 18,000 employees from its workforce. The cuts, which comprise more than 6 percent of the company's total workforce, are part of Microsoft's overhaul of its struggling phone business. In yet another acknowledgement of just how badly its smartphone business has been faring, Microsoft will also take a $7.6 billion impairment charge for its acquisition of Nokia's handset business, which it bought in 2014 for $7.9 billion.
Industry insiders had long been expecting Microsoft to make an announcement along these lines. In the company's last quarter, it "spent $1.8 billion to sell $1.4 billion of phones," Business Insider reports, losing roughly 12 cents on every phone sold. USA Today reports that, since the company's announcement on Wednesday morning, shares of Microsoft are already up more than 1 percent.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Is UK's new defence plan transformational or too little, too late?
Today's Big Question Labour's 10-year strategy 'an exercise in tightly bounded ambition' already 'overshadowed by a row over money'
-
How much should doctors trust parental intuition?
In The Spotlight Study finds parents' concern can be better at spotting critical illness than vital signs
-
How to go on your own Race Across the World
The Week Recommends The BBC hit show is inspiring fans to choose low-budget adventures
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect