Microsoft is gearing up to axe nearly 3,000 jobs by the end of this fiscal year and the layoffs apply to the company's struggling phone business.
The fiscal year ends in mid-2017, when 2,850 Microsoft employees involved with phone hardware and sales will get the boot.
Microsoft broke the news in its annual report for the fiscal year ended in June 2016, which it filed Thursday, July 28, with regulators.
"In addition to the elimination of 1,850 positions that were announced in May 2016, approximately 2,850 roles globally will be reduced during the year as an extension of the earlier plan, and these actions are expected to be completed by the end of fiscal year 2017," reads the 10-K filing.
As a reminder, those 1,850 jobs axed in May were also in the company's smartphone unit as Microsoft ditched Nokia, and followed another 4,500 job cuts as Microsoft sold its feature phone business.
The new job cuts follow the departure of Microsoft Chief Operating Officer (COO) Kevin Turner and as part of the reorganization, 900 layoffs have reportedly occurred already in the company's sales unit, the Seattle Times reports.
The publication further notes that most people being laid off have already been notified, according to a company spokesperson. If Microsoft holds true to its fiscal year deadline, the rest of the layoffs should be completed by June 2017.
The massive layoffs stand to prove that Microsoft's phone business has not been faring all that well, as the company failed to make its Windows Phone OS a true competitor to Apple's iOS or Google's Android, which dominate the market.
The latest Windows 10 Mobile brings a number of powerful new features and upgrades over the previous Windows Phone versions, but it remains to be seen whether it will manage to make Microsoft more relevant on the highly competitive smartphone market.
Microsoft has not offered any other comment beyond what it disclosed in the annual 10-K filing. Overall, Microsoft's phone hardware business has been somewhat of a sore spot in the company's financials, registering hefty revenue declines over several consecutive quarters, as well as a year-over-year revenue decline.
The reorganization might be beneficial for Microsoft's business overall, considering that its cloud business is growing, but only time will tell. All in all, it seems Microsoft is gradually giving up on its dream to be a major smartphone maker, and that may be for the best.
We'll keep you up to date as soon as more information becomes available, so stay tuned.
