Microsoft is selling its entire feature phone business to Foxconn’s FIH Mobile subsidiary and Finnish company HMD Global, Oy for $350 million.
The tech giant has spent the last year offloading some of its most controversial business decisions.
Microsoft attempted to break further into the smartphone market in 2013 when then-CEO Steve Ballmer acquired Nokia, one of the few companies that embraced the Windows Mobile OS.
At the time of that acquisition, Nokia was the largest feature phone manufacturer in the world.
Under the leadership of Microsoft’s current CEO, Satya Nadella, 18,000 Nokia employees were laid off in 2014. Last year, he cut another 7,800 jobs in the smartphone hardware business and scaled back Microsoft’s emphasis on phones.
FIH Mobile will now control all of the company’s feature phone assets, including brands, software, and customer contracts. It will also take over the company’s factory in Vietnam.
4,500 employees will be transferred from Microsoft to FIH Mobile.