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September 05, 2014

Nokia to Bear the Brunt of Microsoft Layoffs

The news that Microsoft plans to cut around 18,000 jobs over the next year will have profound consequences for Nokia, the Finnish handset maker that was acquired by Microsoft in September 2013. This round of layoffs alone – the biggest ever in Microsoft’s history – will see 12,500 Nokia employees let go.

One notable result is that the Nokia X smartphone, which originally ran on Android, will now run on the Windows Phone operating system as part of Microsoft’s plan to make inroads into the budget handset market.

“We plan to shift select Nokia X product designs to become Lumia products running Windows. This builds on our success in the affordable smartphone space and aligns with our focus on Windows Universal Apps,” said Satya Nadella, who was appointed CEO of Microsoft earlier this year.

The Nokia X was announced in February 2014 and was the first Nokia handset to use Android, albeit a heavily customised version of the OS without the Google Play app store – instead offering an array of Microsoft and Nokia apps.