Redmond’s Microsoft to close physical stores, take $450 million hit

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Redmond’s Microsoft to close physical stores, take $450 million hit

In context of a spike in pandemic cases across the United States, the Redmond, Washington-based software maker Microsoft Corp. had issued a statement saying that it would shut down all of its retail stores, while the architect of the leading cloud computing platform Azure, the Microsoft CEO Satya Nadella & Co.

had also added the company would take a $450 million hit from a related pre-tax asset impairment charge at its current-quarter. Aside from that, the Redmond-based software industry Goliath that shifted its focus on to cloud computing instead of preparing operating systems and software for computers since 2014 under the leadership of Company Chief Executive Satya Nadella and became the world’s No.

1 cloud computing services provider ahead of Amazon’s Amazon Web Services (AWS), had also added on its statement that the company would continue to serve its consumers online, while its team members would be working remotely from separate corporate facilities.

In tandem, shortly after the Microsoft announcement late on Friday, a company spokesman was quoted saying in an interview with a press agency that all retail employees would be provided with an opportunity to remain in the company on different roles.

Microsoft rethinks other HQ locations that serve all customers

Meanwhile, adding that company was exploring an option to shift its HQs to other locations that could serve all consumers including Microsoft Experience Centre in London, NY, Sydney and Redmond, the software industry giant’s Corporate Vice President David Porter said to the company’s retail employees in a statement, “Speaking over 120 languages, their diversity reflects the many communities we serve.

Our commitment to growing and developing careers from this talent pool is stronger than ever”. Concomitantly, addressing Microsoft Corp.’s latest move to shutdown all of its retail stores a smart approach since physical stores all over the world were generating hardly any profit since mid-March, a Wedbush analyst Dan Ives said in a client note following Microsoft announcement, “This is a tough but smart strategic decision for (CEO) Nadella & Co.

to make at this point. The physical stores generated negligible retail revenue for Microsoft and ultimately everything was moving more and more towards the digital channels over the last few years”