Microsoft Takes a Hit Before Windows 10 Launch

Microsoft Takes a Hit Before Windows 10 Launch

Microsoft this week reported its highest-ever quarterly net loss, thanks in part to a write-down of its Nokia phone business.

                  For the fiscal fourth quarter, which ended on June 30, the company's net loss came to $3.2 billion—a massive hit following $4.61 billion net income during the same time last year.

That includes Redmond's enormous $8.4 billion bill, which covers various charges: $7.5 billion impairment fee related to the Nokia acquisition, $780 million restructuring cost, $160 million charge for an integration and restructuring plan.

"Our approach to investing in areas where we have differentiation and opportunity is paying off with Surface, Xbox, Bing, Office 365, Azur,e and Dynamics CRM Online all growing by at least double digits," Microsoft CEO Satya Nadella (pictured) said in a statement.

Overall Devices and Consumer revenue declined 13 percent, but Redmond is focused on the silver linings: Tablet sales increased by 117 percent, while Xbox Live transactions and first-party games boosted console earnings by 27 percent. Microsoft also added nearly 3 million Office 365 Consumer subscribers during the quarter.

"And the upcoming release of Windows 10 will create new opportunities for Microsoft and our ecosystem," Nadella said.

Earlier this month, the tech giant announced plans to cut up to 7,800 jobs, as part of an effort to "restructure the company's phone hardware business to better focus and align resources." Layoffs will occur over the next several months, affecting mostly those workers in Microsoft's struggling phone business. Cuts will be "substantially complete" by the end of the calendar year.

The move comes after Redmond last month shuffled its executive team, in which former Nokia CEO Stephen Elop left the company, and Executive Vice President Terry Myerson took full control of devices.