Microsoft on Wednesday announced plans to streamline the company's smartphone hardware business, which will impact up to 1,850 jobs. As a result, the company will record an impairment and restructuring charge of approximately $950 million, of which approximately $200 million will relate to severance payments.

"We are focusing our phone efforts where we have differentiation — with enterprises that value security, manageability and our Continuum capability, and consumers who value the same," said Satya Nadella, chief executive officer of Microsoft. "We will continue to innovate across devices and on our cloud services across all mobile platforms."

Microsoft anticipates this will result in the reduction of up to 1,350 jobs at Microsoft Mobile Oy in Finland, as well as up to 500 additional jobs globally. Employees working for Microsoft Oy, a separate Microsoft sales subsidiary based in Espoo, are not in scope for the planned reductions.

Microsoft acquired Nokia's phone business for $7.2 billion two years ago and last year, the company wrote off $7.6 billion and cut 7,800 jobs to refocus its phone efforts.

Nadella announced a "more effective and focused phone portfolio" almost a year ago, and one that focused on three areas: business, value phones, and flagships. Microsoft is refocusing its phone efforts once again, and it's clear Microsoft is scaling back even further. "We're scaling back, but we're not out!" said Terry Myerson, Microsoft's head of Windows and devices. Myerson also adds that Microsoft's "phone success has been limited to companies valuing our commitment to security, manageability, and Continuum, and with consumers who value the same."

It's not clear that we'll even see the new devices this year. Rumors suggest that Microsoft is planning a Surface-branded phone for next year, and that the Lumia 650 was Microsoft's last Lumia device.