The Redmond giant decided to set aside its operations in physical stores. It affects multiple locations scattered around the world
An unexpected tremor was felt this Friday in the world of technology: Microsoft announced that will close almost all of its stores in the world since the bulk of sales are made online.
The firm has been operating its own points of sale since 2009 and came to add more than 100 stores. Many of them are in the United States, Canada, the United Kingdom, Australia and Puerto Rico.
Now, with the decision to close them, he ends the ambition to compete on an equal footing with the “Apple StoreIn fact, Microsoft had also dabbled in the cell phone business and had to undertake the pullout. Despite the good quality of its products – technology inherited from Nokia – it was unable to make itself a convenient place between Apple and Android.
The Redmond giant said it will make a provision of $ 450 million to cover the impairment of assets under this decision, which will be recorded in its accounts for the current quarter ending June 30.
The hundred stores closed during the coronavirus pandemic will not reopen, said the company that will create “Microsoft experience centers“in London, New York, Sydney and at its Redmond headquarters in western Washington state. The number of jobs to be lost due to this decision was not immediately specified.
A few Microsoft stores will become “Experience Centers”.
What will happen to Microsoft employees?
However, from Microsoft they pointed out that lEmployees of these points of sale may continue to be part of the company. They will help support customers from “Microsoft corporate facilities and remotely providing sales, training and support.”
“Our sales progressed online” and the teams “demonstrated their ability to serve our customers beyond physical ties,” said David Porter, vice president of brands, in a statement.
“Our teams will continue to serve our clients from our offices or from home.“Porter added in a note on Linkedin, the professional network that belongs to the group.
Satya Nadella, the CEO of Microsoft who knew how to reinvent the company.
I turn to online commerce
Currently, the company founded by Bill Gates has 116 physical points of sale, of which it will keep only 4 operating. And, as announced, they will not continue to be stores, but will mutate to become “Experience Centers”. Specifically, the four points are in New York, London, Redmond and Sidney.
Microsoft estimates that Internet retail sites, including Xbox and Windows, they are visited by more than 1,200 million people every month in 190 markets.
Microsoft will invest in tutorials, video calls, and other customer and partner support tools, always online.
The group considers itself well positioned to get through the crisis, in particular thanks to the explosion of the “cloud”. In addition, the firm can count on its programs and services related to telework, distance education and video games.
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