It looks like the honeymoon period is well and truly over between Microsoft and Nokia now, after the American company announced 18,000 job cuts, mainly based within Nokia’s former staff members.
Microsoft CEO Satya Nadella announced the cuts in an email to all Microsoft staff this week, whilst workers will be informed of their exact fate over the next six months.
The only good news about this announcement comes with the inclusion of a severance package to each employee that is laid-off, along with the half year time frame, giving the chance for workers to at least look for other openings.
The majority of cuts will be made in the IT sector and factory sector of the Nokia base of operations, with some jobs in other sectors also at risk.
The move is apparently an attempt to simplify the production of smartphones made by the companies, which could possibly signify some jobs in Microsoft’s midsts opening up.
Also, Stephen Elop, Head of Microsoft Devices announced that the company’s Nokia X experiment was officially ending, meaning it’s unlikely that we’ll be seeing any more Nokia’s running the Android operating system.
This brings serious question against the Nokia X2, which was only revealed several weeks ago as a successor to the Nokia X, which itself made such a big splash at MWC in Barcelona this spring.
Reports suggest that Microsoft want to cease the Nokia X project immediately, but it depends on how far Nokia had got with the X2.
If the handset is near completion, it’s likely that it might make it onto market, but if it is still way off an impending release, it could be scrapped altogether by Microsoft.
Support and sales of the original Nokia X handsets have been confirmed by Microsoft though, meaning Nokia X users should still get updates, and for those thinking about grabbing one, it means that it will still be up for official sale until stock runs out.
Microsoft didn’t announce any other cuts from the Nokia smartphone line-up, meaning it was probably fairly annoyed that Nokia had opted to release an Android phone in direct competition with Windows Phone 8.1.
In fact, it was quite a surprise to see the first Nokia X handsets make it into production altogether, with many smartphone experts almost expecting the handset to get shot down right off the bat, especially with Microsoft’s takeover in full swing when the handset was announced.
Microsoft is still expected to manufacture Nokia handsets like the Asha and Lumia handsets even after the cuts, especially considering how well they’ve done over the past few years, with the like of the Lumia 1020, 930 and 520 all receiving good reviews.
Obviously, as more news heads out about the cuts being enforced by Microsoft, we’ll be sure to let you know, but for now, you can at least expect it to be business as usual for Nokia handsets until just after Christmas.
Written by Luke Hatfield