Microsoft To Cut 7,800 Jobs As It Winds Down Phone Business

Microsoft Corp. will cut another 7,800 jobs as part of a restructuring plan as it ditches plans to create a standalone phone business and doubles down on expanding its Windows ecosystem. The company said the prospects for the phone hardware segment are "below original expectations." It will record an impairment charge of roughly $7.6 billion related to assets associated with its acquisition of Nokia Devices and Services, as well as an overall restructuring charge of $750 million to $850 million related to the layoffs. "We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family," said Microsoft CEO Satya Nadella. Microsoft expects to substantially complete the layoffs and restructuring by the end of this calendar year. Shares of Microsoft fell 0.5% to $44.10 in premarket trade. They are up 7% over the last three months, outperforming the broader S&P 500, which is flat.