The experience might not be flawless, but it does provide a way to use one device as both a smartphone and a desktop, complete with support for Microsoft Office, among other things.
The news is the latest in a long line of setbacks to emerge from Microsoft's doomed $8 billion Nokia acquisition.
Microsoft acquired Nokia for $7.2 billion in 2014.
The deal is expected to close in the second half of 2016 and will include the transfer of as many as 4,500 employees to both companies, the announcement said.
CEO, Satya Nadella said in a statement regarding the steps taken by the company to lay-off its Nokia contingent that Microsoft will continue to focus on differentiation and in areas where the brand is strong like Security and Continuum.
He said: "We will continue to innovate across devices and on our cloud services across all mobile platforms".
According to a company media release, this will result in the organisation registering an impairment and restructuring charge of around $950 million, of which around $200 million will be linked to severance payments.
The software developer announced roughly a week earlier that it will offload its feature phone business to FIH, a subsidiary of Foxconn, and HMD Global, a private venture based in Helsinki, for 350 million dollars. Other than this, it is worth noticing, that with this layoff, the company will be writing off $950 million from the business.
Translation: Microsoft may not be able to make smartphones that sell, but it can still have a presence on the iPhone and Android-based phones.
Microsoft killed the last remaining holdings of Nokia.
But Android and iOS continue to dominate the smartphone market and Gartner estimates that Windows had a market share of just about 1 percent previous year.
Two years ago, Microsoft Corp had bought handset maker Nokia in an attempt to go against market leaders like Apple Inc and Samsung Electronics Co Ltd. However, Microsoft could be going back to the drawing board to develop a totally redesigned Surface Phone.
"We are now in development of our next generation products and I wanted to reconfirm our commitment to Windows 10 Mobile".
Source: Microsoft cuts 1850 jobs in its smartphone unit
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