Microsoft says it will scale back its smartphone hardware business even more, cutting 1,850 additional jobs and taking a $950 million charge as the company pulls back further from its ill-fated $7 billion acquisition of Nokia’s smartphone division.

The announcement Wednesday morning reflects the reality of Microsoft’s position in the smartphone market against Apple’s iPhone and devices that run Google’s Android operating system. Windows-powered devices fell to less than 1 percent of the worldwide smartphone market in the latest quarterly stats from the Gartner research firm, while Android climbed to more than 84 percent.

However, Microsoft insists that it isn’t exiting the business or consumer smartphone hardware market entirely, instead saying that it’s “streamlining” its efforts in this area, focusing on phones with management and security features that traditionally appeal to enterprise users.

Microsoft is “scaling back, but we’re not out!” wrote Terry Myerson, executive vice president of the company’s Windows and Devices Group, in an email to employees this morning.

Satya Nadella, the Microsoft CEO, said in a news release announcing the cuts: “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. We will continue to innovate across devices and on our cloud services across all mobile platforms.”

It’s Microsoft’s latest move in a broader retreat from the mobile phone and smartphone hardware business, which the company acquired from Nokia for more than $7 billion in 2014.

The deal was put together under former Microsoft CEO Steve Ballmer. Under Nadella, the company retreated from the strategy and said last year that it would narrow its hardware focus to flagship smartphones. Before today’s announcement, the company had cut a total of more than 19,000 jobs associated with the Nokia acquisition.

With the latest news, Microsoft is retreating even further. The company had been rumored to be working on a “Surface Phone,” moving beyond the Lumia lineup acquired from Nokia, but executives never confirmed those plans. In the meantime, Microsoft’s sales of its own smartphones have been plummeting.

Last week, Microsoft agreed to sell its entry-level phone business for $350 million to FIH Mobile Ltd., a subsidiary of Hon Hai/Foxconn Technology Group, and a new company called HMD Global, led by former Nokia and Microsoft mobile executives. That deal will result in the Nokia brand returning on mobile phones and tablets, but this time running Android.

Here is Myerson’s full memo to employees …