Microsoft Corporation (MSFT) Layoffs Giving Visibility Of Its Revival Attempts

On Thursday, Microsoft Corporation (NASDAQ:MSFT)‘s CEO Satya Nadella gave away his first batch of decision as he strives to revive the software giant after he took charge five months back. The company announced to axe nearly 18,000 jobs during the year, as part of its restructuring strategy and streamlining business, post $7 Billion worth Nokia Corporation (ADR) (NYSE:NOK)’s handset acquisition. The decision will impact nearly  12,500 Nokia Corporation (ADR) (NYSE:NOK)’s employees out of the total 18,000. CNBC discussed Nadella’s move with Dan Niles of AlphaOne Capital Partners, who is fond of the decision.

“It’s great, I mean, it’s the next best thing to getting rid of Nokia altogether in my opinion. Because that merger, I don’t think, was very good, but now you got a new CEO in charge and I think, you are starting to see him put a stamp on the business,” said Niles.

According to Niles,  Microsoft Corporation (NASDAQ:MSFT) has reasonably cut 14% of the total 1,27,000 workforce against the expected 5-10%, in which, half of the employees belong to Nokia Corporation (ADR) (NYSE:NOK). While the job cut may be perceived as a negative, but Niles expects the cost savings to go back into the business to help drive ‘Cloud,’ a segment on fire at this moment.

There has been an element of considerable change in  Microsoft Corporation (NASDAQ:MSFT)’s recent outlook as the company is working to become a dominant player in the cloud. In fact, Niles was appreciative of the shift in Nadella and Microsoft Corporation (NASDAQ:MSFT)’s approach to be willing to roll out windows applications on other operating systems, which the company’s prior management had majorly avoided doing. Though, the focus on the cloud will certainly not take away attention from the company’s upgraded launch of operating systems, like Windows 8. But, Niles said that the cloud will enhance the way these upgrades are delivered going forward.

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