Microsoft has announced that it will be axing 7,800 jobs and taking a $7.6bn loss as the company looks to distance itself from the seemingly unsuccessful acquisition of Nokia's phone division.
Nokia became Microsoft Devices when it was bought by Microsoft back in 2013.
The company announced in a statement that along with the jobs and the loss the company would be paying anywhere up to $850m in 'restructuring charges'.
Speaking to the employees in a statement Microsoft CEO Satya Nadella said: “We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem including our first-party device family,”
Microsoft CEO Satya Nadella is keen to bring the focus back onto software with Windows 10.
“In the near-term, we’ll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility.”
Microsoft bought Nokia Devices back in September 2013 in a £4.6bn deal that would see Nokia's Lumia smartphones head over to Microsoft along with the company's CEO Stephen Elop.
In a joint statement both companies said: "With the commitment and resources of Microsoft to take Nokia’s devices and services forward, we can now realize the full potential of the Windows ecosystem, providing the most compelling experiences for people at home, at work and everywhere in between."
"We will continue to build the mobile phones you’ve come to love, while investing in the future – new phones and services that combine the best of Microsoft and the best of Nokia."
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Since then both the CEOs that were key partners in the deal have left the company leaving current CEO Satya Nadella with a hardware business that has been underperforming.
It's not know what Microsoft plans to do with the mobile hardware segment of the business after this announcement however some industry experts believe that Microsoft may shift its mobile business into the 'Surface model'.
This would involve having a very small range of flagship products which would then inspire third-party hardware manufacturers to follow suite.