Microsoft is laying off 7,800 people, primarily employees involved with Windows Phone hardware business, officials announced on July 8.
Microsoft also is taking a $7.6 billion write-down related to its Nokia acquisition, plus a restructuring charge of between $750 million to $850 million. Microsoft plans to complete the job cuts largely by the end of calendar 2015 and completely by the end of fiscal 2016, which means June 30, 2016.
Despite that fact, the company is not throwing in the towel on Windows Phone, one of a handful of first-party devices the company makes. (Other Microsoft-made/branded hardware include the Surface tablet line and Surface Hub conferencing system; Xbox gaming console; Microsoft fitness Band; and the coming HoloLens augmented-reality headset.)
Microsoft still plans to make Lumia phones and is pushing ahead with Windows 10 Mobile, its operating system for Windows Phones and small tablets, expected to hit later this year. Microsoft still plans to launch Lumia flagship devices this calendar year. (The rumor is this fall, once Windows 10 Mobile is available.)