Microsoft announced today a new round of job cuts that would specifically target the phone hardware business and many now believe that Windows Phone indeed doesn't have a future in Redmond's lineup, especially amid rumors that the company wants to focus on products that generate profits.

But in an email sent by Microsoft CEO Satya Nadella to employees, the company leader reveals that Windows Phone will continue to exist with a big difference: only three different types of phones will be launched, thus dramatically simplifying its lineup.

Here's what Nadella said (emphasis is ours):

“In the near term, we will run a more effective phone portfolio, with better products and speed to market given the recently formed Windows and Devices Group. We plan to narrow our focus to three customer segments where we can make unique contributions and where we can differentiate through the combination of our hardware and software. We’ll bring business customers the best management, security and productivity experiences they need; value phone buyers the communications services they want; and Windows fans the flagship devices they’ll love.”
Windows Phone flagships

Basically, Microsoft will launch new phone models for the most important customer segments out there, namely value phones for those looking for an affordable device, business devices for enterprises and flagships for those who want a high-end phone.

Redmond will most likely give up on some models and launch only one or two devices for each category, so as compared to the existing lineup, Microsoft will have just a handful of phones on the market at any given moment.

There's no doubt that Windows 10 Mobile is going to be a turning point for Microsoft and all these changes might be coming at the right time, but time will tell if they could help the company become a stronger rival for Android and iOS.

In the meantime, all these new phones that Nadella promised are expected to arrive later this year with the new OS, including flagships that already generate terrible excitement in the Windows Phone community.