Microsoft is set to expand its presence in mobile phones by hiring more than 1,000 new engineers, the company announced Tuesday.
The news was a surprise to investors after Microsoft reported a fourth quarter loss in the first quarter.
It reported a loss of $1.09 billion for the quarter, but said it would keep its core operating profit per share flat to $1 per share.
It said it plans to keep spending on marketing and new hardware to keep the company in the top 10 smartphone makers.
Microsoft said it has hired 1,876 people in the US, adding 2,600 to its workforce.
It expects to hire about 1,700 people in Japan and another 800 in Europe, and expects to add more in the near future.
Microsoft has spent a lot of money to hire talent.
It spent $7.3 billion in fiscal year 2015, more than half of it on new hires, including more than 200 hires in its Windows and Office divisions.