"I am committed to our first-party devices, including phones," Nadella said in an email to Microsoft employees. "However, we need to focus our phone efforts in the near term while driving reinvention." Nadella warned of tough choices ahead, noted Fortune. The fact that most of the cuts come from the company's phone business is not a surprise, it said. A Microsoft spokesman said the cuts were all about focusing the company on core businesses, which is why it just sold some of its mapping business and ad sales business to AOL. "We want to concentrate on where we can add value," he told Fortune.