Microsoft is cutting 7,800 jobs
Nadella says job cuts will take place mostly in Microsoft's hardware division, including its smartphone business.
In 2014, Microsoft bought Nokia's struggling smartphone business for $7.2 billion. Since then, Microsoft has tried restructuring it.
As a result of Wednesday's layoffs, Microsoft will incur an impairment charge of approximately $7.6 billion related to assets related to its Nokia acquisition.
Job cuts will take place over the next few months, Nadella said in his memo.
The new job cuts are in addition to the 18,000 jobs the company said it was planning to cut last year.
"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," Nadella said in his memo. "In the near-term, we'll run a more effective and focused phone portfolio while retaining capability for long-term reinvention in mobility."
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