As Microsoft's mobile business continues to struggle, the company has announced plans to lay off up to 1,850 people working on smartphone hardware, many of them former Nokia employees. Microsoft bought Nokia's Devices and Services division in 2013, but in July 2015, it laid off 7,800 former Nokia workers. Last week, it sold the Nokia feature phone division, and now it is scaling back its smartphone plans.
Microsoft CEO Satya Nadella released a statement saying, "We are focusing our phone efforts where we have differentiation—with enterprises that value security, manageability and our Continuum capability, and consumers who value the same."
Some are speculating that the company could still create a Surface phone. An internal memo from an executive to employees supported this idea, insisting, "We're scaling back, but we're not out!"