Microsoft’s Wearable Imperative

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3Q 2014 | IN-1019710

Microsoft Restructuring and Cuts Implications


Microsoft’s restructuring announced last week, which could see the loss of 18,000 jobs, included the decision to cancel the Nokia X, always an awkward fit and something it inherited from the Nokia acquisition. Given the potential job losses facing the former Nokia employees, the move to launch a forked-Android device may have been a key driver of the acquisition, rather than the employee resources.  The announcement brings into even sharper focus Microsoft’s mobile strategy.

New CEO Satya Nardella’s email to all Microsoft employees, a precursor to the restructuring announcement, also said that “some” of the Nokia X devices would migrate to the Lumia brand and Windows Phone, suggesting lower price points for Windows Phone and the Lumia sub-brand as it targets emerging markets. 

More generally discontinuing the Nokia X is just a small part of Nadella’s efforts to streamline the company and create...

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