Microsoft has confirmed they are closing down some of their Finland based Nokia Oyj’s sites putting 2300 jobs on the chopping block.
Microsoft confirmed on Friday that they are closing down their handset product development unit in Salo, Finland as part of their global plan to cut down on 7800 jobs, mostly in the phone hardware sector that it bought from Nokia last year. According to Microsoft, only two sites in Espoo and Tampere will remain open.
Finnish Prime Minister Juha Sipila called Microsoft’s decision “A big blow” and has visited the town of Salo to see where government could help. Salo has a population of only 54000 according to Reuters making the job losses are a major economical setback for the town.
In 2014 Microsoft acquired Nokia for a staggering $7billion in a deal that would see the OS giant acquire the struggling phone company. This was Microsoft’s bid to get back into the smartphone race while Samsung Android and Apple’s IOS devices commanded most of the market share. Sufficed to say the Nokia Lumia Windows phone did not do as well as Microsoft would have expected leaving Samsung and Apple in the lead to date.
According to Extremetech, Windows phone market shares as already fallen below three percent. This could be in part why Microsoft has opted for a global cutback on Nokia. Although it is still early days we are yet to see what Windows 10 will do for the struggling Windows Phone range. Microsoft is currently in a race to have their Windows 10 phones manufactured and approved by US carriers.
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