Redmond-based tech giant Microsoft announced Wednesday that it would be cutting 1,850 jobs in its smartphone hardware department.
About 1,350 of the layoffs will be in Finland at Microsoft Mobile Oy, and another 500 globally. In total, the cuts will cost the company $950 million, of which approximately $200 million will be in severance payments.
The layoffs come on the heels of news last week that Microsoft would be selling off its entry-level feature phone assets to FIH Mobile, Ltd. for $350 million. FIH Mobile also acquired Microsoft Mobile Vietnam, a manufacturing facility in Hanoi.
After purchasing Nokia handset operations for $7.2 billion in 2014, the phone business never delivered what Microsoft had hoped. In 2015, Microsoft cut 7,800 jobs when it changed its phone strategy, Microsoft also took a $7.6 billion accounting charge, more than it paid for Nokia in the original deal.