Lumia 640 XL

Today's announcement that Microsoft will cut its work force by 7,800 employees may also affect how many new phones it releases each year. A new report claims that the company will only release six different phone models a year from now on, with two models each in three categories.

In his email to Microsoft employees, CEO Satya Nadella confirmed that the company will concentrate on three categories for new phone launches:

"We plan to narrow our focus to three customer segments where we can make unique contributions and where we can differentiate through the combination of our hardware and software. We'll bring business customers the best management, security and productivity experiences they need; value phone buyers the communications services they want; and Windows fans the flagship devices they'll love."

In addition, Bloomberg, citing unnamed sources, stated:

"Nadella's restructuring plan includes sharply reducing the number of models the company will release, now about one a week when counting variations for geographical markets, a person familiar with the plans said. Instead, Microsoft will release one to two models a year in each of three categories, said the person, who asked not to be named because the plans aren't public. The categories are business-focused devices, phones for customers looking for low-price smartphones, and high-end devices for Windows enthusiasts."

Microsoft is highly expected to reveal two new Windows 10 Mobile flagship devices later this fall, which are being created under the code names "Talkman" and "Cityman".

Source: Bloomberg