The exact number of job cuts is unknown at the moment, although it is believed to be a number in the "dozens." Last July, Microsoft announced layoffs of up to 7800 in its smartphone hardware division. At the same time, the company took a charge of $7.6 billion.
Microsoft sold only 4.5 million Lumia handsets during the fourth quarter, and the company makes more money from licensing its Android patents than it does from selling its smartphones. Some are expecting Microsoft to launch a Surface Phone in the second half of the year. The device will reportedly be more about design than specs, and focus on enterprise sales.
source: HelsiginSanomat via WindowsCentral