Wednesday October 17, 2018
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Microsoft slashes 7,800 jobs, mostly in phones unit

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Satya-Nadella 

Washington: Indian American CEO Satya Nadella-led Microsoft on Wednesday announced it was laying off 7,800 employees primarily in the phone business as part of a major overhaul aimed at focusing the company on its core businesses.

This is Nadella’s second major restructuring of Microsoft, a major employer of Indian IT professionals. It had 118,600 employees at the end of March, with about 60,000 of them in the US.

The new cuts represents about 7 percent of its workforce, compared to the 14 percent or 18,000 layoffs he announced last year in Nokia’s devices and services business, following Microsoft’s acquisition of the handset maker.

The new job cuts and restructuring will also mean a $7.6 billion writedown for the company, a one-time charge that many have been expecting, according to CNN.

Former Microsoft CEO Steve Ballmer’s 2013 purchase of Nokia was one of his most criticized deals with analysts suggesting Ballmer was hampering the company with an ageing legacy business.

While Microsoft will not stop making smartphones, Nadella on Monday said Microsoft would no longer focus on the growth of its own smartphone business.

“I am committed to our first-party devices, including phones,” Nadella said in an email to Microsoft employees. “However, we need to focus our phone efforts in the near term while driving reinvention.”

In late June too, Nadella warned of tough choices ahead, noted Fortune.

The fact that most of the cuts come from the company’s phone business is not a surprise, it said.

A Microsoft spokesman said the cuts were all about focusing the company on core businesses, which is why it just sold some of its mapping business and ad sales business to AOL.

“We want to concentrate on where we can add value,” he told Fortune.

(IANS)

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Microsoft Co-Founder Paul Allen Will Be Remembered

Allen was also owner of the National Football League's Seattle Seahawks, and the Portland Trail Blazers professional basketball team.

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Paul Allen
Microsoft co-founder Paul Allen at a news conference (from archives). VOA

Microsoft co-founder Paul Allen, who visualized the indispensability of the personal computer more than 40 years ago, died Monday at 65.

Allen’s family said he died in Seattle of non-Hodgkin’s lymphoma, a form of cancer he had been battling off and on since 2009.

After persuading high school friend Bill Gates to drop out of Harvard in 1975, the two teamed up to develop a rudimentary software that hobbyists used to operate home-built computers.

Microsoft, paul allen
An advertisement is played on a set of large screens at the Microsoft office in Cambridge, Massachusetts, U.S, VOA

“I expect the personal computer to become the kind of thing that people carry with them, a companion that takes notes, does accounting, gives reminders, handles a thousand personal tasks,” Allen wrote in Personal Computing magazine in 1977.

Allen and Gates called their company Microsoft and spent the next several years developing the software that revolutionized the world.

Allen and Gates split in 1983, but Allen kept his share of Microsoft, making him a billionaire.

Gates issued a statement on Allen’s death late Monday.

Paul Allen
Paul Allen in 2003

“I am heartbroken by the passing of one of my oldest and dearest friends, Paul Allen,” he said.

According to Forbes magazine, Allen was worth nearly $22 billion at the time of his death, making him the world’s 44th wealthiest person.

Allen was also owner of the National Football League’s Seattle Seahawks, and the Portland Trail Blazers professional basketball team.

Also Read: Microsoft Cannot Recover Files Deleted By Windows 10 Update

He also used his wealth to refurbish a crumbling neighborhood of his native Seattle, turning it into a headquarters for Amazon. (VOA)

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