Microsoft Corporation (NASDAQ:MSFT) is planning to shut down its online display advertising business, which would affect 1,200 jobs, according to Bloomberg based on information obtained from people familiar with the matter.
The stock price of Microsoft declined nearly 2% to $44.37 per share today.
Microsoft plans to hand over display advertising business to AOL, AppNexus
According to one of the sources, Microsoft intends to hand over the operations of its display advertising business to AOL, Inc. (NYSE:AOL) and AppNexus Inc.
The person suggested that some of the employees of the software giant will be transferred to AOL and AppNexus while others will be offered to work on other position at Microsoft. Other jobs will be terminated. The source requested anonymity because the deal is still private.
Microsoft spokesman Peter Wootton declined to comment on the report.
Microsoft focuses on its mission to make a difference
Last week, Microsoft CEO Satya Nadella said the company will focus on its mission to make a difference in the world by building best-class platforms and productivity services.
Nadella also announced the company’s official mission statement: “Our mission is to empower every person and every organization on the planet to achieve more.” According to him, Microsoft will be able to achieve its mission by investing in three interconnected and bold ambitions:
- Reinvent productivity and business processes
- Build the intelligent cloud platform
- Create more personal computing
Microsoft is making tough decisions
Nadella also emphasized that Microsoft innovate in new areas, execute against plans, solve difficult problems, and make tough decisions in areas where things are not working.
Microsoft recently shakeup its leadership team as part of its initiative to aligning the company’s structure to its strategy. Some of its top executives will be leaving the company. Stephen Elop, EVP of Devices & Services agreed to retire. Kirill Tatarinov, head of the Dynamics business and Eric Rudder, EVP of Advanced Technology are departing to explore new opportunities.
Nadella has been streamlining the workforce of Microsoft since becoming CEO last year.