Tag: Nokia

Microsoft mobile technology news doesn’t look good with 3,000 lay-offs

The smartphone division of the company is experiencing a staggering number of job losses.

Microsoft has made an unhappy mobile technology news announcement of 3,000 upcoming job losses. The majority of the lay-offs are the result of the astounding failure of the Nokia deal and the redundancies it created.

The affected employees will be losing their positions over the next year within that division.

The Microsoft smartphone hardware business and global sales division will experience a massive reduction in size. Moreover, this is only the latest bad mobile technology news the company has issued this year. Back in May, it confirmed that its mobile branch would be downsizing by 1,850 jobs. At that time, Terry Myerson, the vice president of Windows and device said “we’re scaling back, but we’re not out!”

This all stems from the mobile technology news when Microsoft bought the devices and services business at Nokia.

Mobile Technology News - Shocking NewsThe acquisition occurred in 2013. Microsoft made the purchase for $7.1 billion (€5.4 billion). Not only did it buy the devices and business, but it also took in all the associated problems. As it unfolded, it became one of the most disastrous tech acquisitions in history.

Three months after the acquisition closed, Microsoft eliminated 18,000 positions. The majority were from the phone hardware division. This mainly removed employees who had become a part of Microsoft by way of the Nokia buy-out. One year after that point, Microsoft wrote off $7 billion and laid off 7,800 more employees.

This downward spiral continued into May when the vast majority of the feature phone business was sold at a tiny fraction of its purchase price and additional 1,850 jobs were lost.

Now, the mobile technology news trend continues at Microsoft. In the elimination of redundancies, the company is slashing 2,850 jobs. Within a U.S. regulatory filing, the software giant explained: “we periodically evaluate how to best deploy the company’s resources.” Microsoft also said the restructuring would primarily affect the smartphone hardware business and global sales. These latest position eliminations will be in addition to those announced in May and will not include those figures in their total.

Nokia smartphones and tablets to make a comeback

The Nokia brand is being revived under a new licensing agreement.

The Finish-based multinational communications and information technology company has announced that it will be making a comeback in the mobile industry and will be licensing its brand and intellectual property to HMD global, a newly established company that will produce and sell a portfolio of Andoird-powered Nokia smartphones, feature-phones and tablets.

Feature-phones will be one of the main focuses.

HMD Global – also a company based out of Finland and led by ex-Nokia veteran Arto Nummela – made a conditional agreement with Microsoft to acquire the rights to make and sell Nokia branded mobile devices.

Nokia Smartphones - Image of Nokia N8The major focus of HMD Global will be on feature-phones; the mobile device with which Nokia Technologies has had the greatest amount of success. The agreement that Nokia has made with HMD will give the company all of Nokia’s branding and cellular patents and, in return, Nokia will receive royalty payments from HMD for the sales of the devices, which will cover both brand and intellectual property rights. This agreement will last for ten years.

Once the transaction is completed, which is expected to occur in late June, Nummela will become the CEO.

HMD plans to invest over $500 million to support the global marketing of Nokia smartphones and other mobile devices.

This large investment, which is planned to take place over the next three years, will be paid for by the new business’s investors and profits.

Commenting on the new agreement, Nokia Technologies President Ramzi Haidamus said that it marks the start “of an exciting new chapter for the Nokia brand in an industry where Nokia remains a truly iconic name.” He added that “Instead of Nokia returning to manufacturing mobile phones itself, HMD plans to produce mobile phones and tablets that can leverage and grow the value of the Nokia brand in global markets.”

In addition to its new deal with HMD Global, the remainder of Nokia’s business has been purchased by FIH Mobile ltd., a subsidiary of Foxconn Technology Group. FIH reportedly purchased Nokia’s former feature-phone business from Microsoft for $350 million and will take over its manufacturing facility in Vietnam.

FIH and HMD have already formed a collaborative agreement designed “to support the building of a global business for Nokia-branded mobile phones and tablets,” reported The Verge.

Presently, no information has been released in regard to when consumers can expect the new Nokia smartphones, feature-phones and tablets to hit the market.