The news of Microsoft Corporation (NASDAQ:MSFT) laying off 2,100 workers is the second disappointing news from the software giant this week; Is it heading for three in a row? CNBC‘s Melissa Lee reported the news as other panellists discussed the future out look of the company.
The layoff is actually part of the 18,000 layoffs that Microsoft Corporation (NASDAQ:MSFT) announced earlier. Lee also mentioned that the company announced that it had already completed 15,000 of these layoffs by July and the remaining amount of cutbacks is scheduled to be completed before the end of this year.CNBC also mentioned that 747 of the announced job cuts would be taking place in the Seattle region.
The first disappointing news coming from Microsoft Corporation (NASDAQ:MSFT) this week was the dividend increase. Karen Finerman who is CEO of Metropolitan Capital Advisors Inc. was also on the panel on CNBC. She described how despite announcing an increase in dividends, Microsoft Corporation (NASDAQ:MSFT) still disappointed the investors.
“[…] I think people were disappointed yesterday in the 11% increase in the dividends. There was some speculation or whisper numbers of 20%. They are going to do it. It’s just a matter of time, right. I mean they do have $86 billion in cash,” said Finerman.
The matter of time that Finerman mentioned still remains unclear. If Microsoft Corporation (NASDAQ:MSFT) is setting its eyes on another acquisition, shareholders might not get their hands around hefty dividends at all.
After these two setbacks, the question pops up if Microsoft Corporation (NASDAQ:MSFT) is going to come up with another surprise, not a pleasant one that is to say? Probably not. Pete Narajan, cofounder of optionMONSTER.com, was also one of the panelists. He said that the company’s management had already given an indication of both these announcements before and that the management’s focus has been very clear for a long time.
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