Microsoft's Elop on Cuts, Eliminations, Team Consolidation, and Supporting Nokia X

Microsoft's Elop on Cuts, Eliminations, Team Consolidation, and Supporting Nokia X

Stephen Elop, Executive Vice President of Microsoft's Devices and Services unit (and former CEO of Nokia before the Microsoft acquisition) has followed Satya Nadella's job elimination email today with an email of his own.

Amid the usual flowery, well-edited statements, Elop provides some bullet points worth noting. The email contains a lot of what we already know, like a focus on Universal Apps, and providing lower cost devices, but there's some clarifications on new directions and changes that are important:

  • Nokia X designs and products will be shifted to Windows Phone devices.
  • The shift will be immediate.
  • Microsoft will continue to sell Nokia X devices (until they run out) and continue to support them (for how long is a guess).
  • Team structure changes will reflect the integration of Lumia devices.
  • Microsoft will consolidate the Smart Devices and Mobile Phones units into a single Phone business.
  • The new team will be led by Jo Harlow and be responsible for the Nokia X transition.
  • Microsoft will modify the business model approach for Lumia products. While still offering in all markets, the business model will be evolved to provide better strategic importance.
  • Phone engineering will be focused in Salo, Finland for high-end devices and Tampere, Finland for the lower cost units.
  • Reduction in engineering focus in Oulu, Beijing, and San Diego.
  • Espoo and Lund will be focused on application software development.
  • Microsoft will phase out manufacturing and operations in Komaron, Hungary.
  • The reductions and phase-outs will result in 12,500 jobs losses for factory works and professional employees over the next year.

Full email: Stephen Elop's email to employees

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