Microsoft has been changing. What has happened?

Last week, Satya Nadella wrote an email to Microsoft’s employees covering many of their businesses. He covered Windows Phone, Bing Maps, and Bing Ads. The email also entitled an “impairment charge” of $7.6B and 7,800 layoffs globally as well as a restructuring charge of $750M to $850M.
The Windows Phone platform has evolved over the years on smartphones from Windows Phone 7 to the yet to release Windows Phone 10. Microsoft acquired Nokia’s Devices and Services businesses in the past 2 years. As a result of many changes to that division, Microsoft is paying an impairment charge of $7.6B with an added $750M to $850M restructuring charge. Satya Nadella wants, “to focus on [Microsoft’s] phone efforts in the near term while driving reinvention.” Also, “In the near term, [Microsoft] will run a more effective phone portfolio, with better products and speed to market given the recently formed Windows and Devices Group.” Microsoft’s long term goal with “Microsoft Devices” is to, “spark innovation, create new categories and generate opportunity for the Windows ecosystem more broadly.” He then moved on to Bing Maps. Satya Nadella covered over Microsoft’s new deal to sell part of their Bing Maps division to Uber. Satya Nadella then announced that Bing Ads would only cover search in the future with Aol and AppNexus doing its display ads. In the email, he says that, “Bing will now power search and search advertising across the Aol portfolio of sites, in addition to the partnerships we already have with Yahoo!, Amazon and Apple.”
Overall, Microsoft has made many moves under Satya Nadella and he has set a new path for the company. According to Satya Nadella’s email, “[He] deeply appreciate[s] all of the ideas and hard work of everyone involved in these businesses, and [he] want[s] to reiterate [his] commitment to helping each individual impacted.” Microsoft has changed all around over the past few years and will continue to change in the future.


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