Microsoft Corp (MSFT.
O) mentioned on Friday it could shut its retail shops and take a associated pretax asset impairment cost of $450 million within the present quarter.
The Redmond, Washington-based software program big mentioned it could proceed to serve clients on-line, with group members working remotely from company amenities.
A Microsoft spokeswoman advised Reuters all present retail workers can be given a possibility to stay with the corporate in several roles.
“Speaking over 120 languages, their diversity reflects the many communities we serve,” Microsoft Corporate Vice President David Porter mentioned of the corporate’s retail workers in an announcement.
“Our commitment to growing and developing careers from this talent pool is stronger than ever.
”The firm additionally mentioned it should rethink different areas that serve all clients, together with working Microsoft Experience Centers in London, New York, Sydney, and Redmond campus places.
“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,” Wedbush analyst Dan Ives mentioned in a observe.
Retailers, whose shops shuttered in mid-March as a consequence of coronavirus-prompted lockdowns, have seen an enormous surge in on-line demand amid stay-at-home orders.