The mobile sector will bear the brunt of the layoffs that comes a year after 18,000 jobs were cut due to a restructuring. However, we need to focus our phone efforts in the near term while driving reinvention.

The company announced Wednesday that it will eliminate 7,800 positions, mostly in its underperforming phones unit. Based on the new plans, the future prospects for the Phone Hardware segment are below original expectations.

The impairment charge will roughly be $7.6 billion in relation to the assets that are associated with all the acquisitions done with Nokia Devices and Service (NDS).

The India born 47-year-old CEO, Satya Nadella, who is Microsoft’s third CEO since the company was founded by Bill Gates, wants to refocus Microsoft on software and in this direction at the end of the month they will launch Windows 10, their first OS since 2012.

Microsoft is understood to be streamlining its mobile phone business, releasing fewer handsets lumped into three categories – business phones, high-end models and budget phones. By contrast, the smartphone division responsible for carrying on the Lumia brand that Microsoft acquired from Nokia has been producing a wide variety of devices across multiple different form factors.

The acquisition now appears to be a costly blunder since Microsoft has continued to lose market share in smartphones since acquiring Nokia’s handset unit.

Last month, Microsoft saw former Nokia chief executive Stephen Elop leave the company.

That reorganization aimed to drive engineering alignment against the company’s core ambitions: reinventing productivity and business processes; building the intelligent cloud platform; and creating more personal computing. As of May 2015, Windows Phone made up just 3% of the United States market, according to a

Going forward, we will focus on building the very best Windows phones on a quicker timeline.

As the tech company looks to trim its workforce, it recently announced that its Bing search engine will be used for search and search advertising across the AOL portfolio of sites, Microsoft announced.