Microsoft Corporation (MSFT) Shifting Away from Hardware with 2/3 of Job Cuts at Nokia

Satya Nadella has signaled a new era for Microsoft Corporation (NASDAQ:MSFT) after signing off, job cuts that will affect 18,000 personnel representing 14% of the company’s workforce. The latest job cuts come as the company tries to shift its focus away from hardware and straight into the cloud. Former Microsoft general manager, Hardeep Walia, has told Bloomberg that Nadella is trying to shift his focus from devices and services, straight into productivity and cloud platform.

Microsoft Corporation (MSFT)

The recent job cuts will mostly affect employees of the newly Acquired Nokia Corporation (ADR) (NYSE:NOK) as the company continues to de-emphasize on hardware development.

“The impact of this loss is that two-thirds is related to the Nokia acquisition which was kind hinted when the deal went down, it was largely expected, and the other third is likely to come in from this realignment of strategy,” said Mr. Walia.

Microsoft Corporation (NASDAQ:MSFT) has in the recent past been shifting its focus into service delivery across various platforms; this has clearly been highlighted with the availability of Microsoft Office, on Apple Inc. (NASDAQ:AAPL)‘s iPad. Office availability on the iPad took a lot of time to be implemented considering it was discussed during Steve Ballmer regime at Microsoft.

Microsoft Corporation (NASDAQ:MSFT) new CEO looks to be finally stamping his authority in the company as he seeks to lead the company to new greater heights in the cloud, amidst increased competition o the hardware side.

“You’ve seen a first step in that direction with office now being available on the iPad, and it took a long time for that to happen and it did happen, be it the plans were probably started prior to Satya Appointment,” said Mr. Walia.

Job cuts and the availability of the Office on Apple Inc. (NASDAQ:AAPL)’s devices, essentially highlights Nadella lack of fear to implement some of the hardest decisions in the industry according Walia. The CEO has reiterated that the current Job cuts are highly needed if the company is to become agile, to move faster in the industry.

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