Analyst Foresees More Job Cuts At Microsoft

Microsoft CEO Satya Nadella surprised the world with a massive 18,000 job cut earlier this month, but it appears that this was just the start. The company might announce more layoffs soon.

That is, if we go by what industry analyst Tomi Ahonen says.

A former Nokia employee, he said in a statement that Nadella is very likely to announce more job cuts in the future, and Microsoft devices staff in particular should be mentally prepared for such an occurring.

Stephen Elop is, of course, leading this important division at Redmond, and even his job is not secure.

Ahonen believes that Microsoft’s smartphone strategy is not exactly bringing the required results, and if things don’t reach the heights where they are expected to be, Elop could be let go, in a bid to deal with the issues:

“The prospects for Microsoft hardware, and especially low-cost phones, are not promising, so this unit is very much in jeopardy. Elop has mismanaged the former Nokia handset business so badly that those remaining with Microsoft handsets will be better off when Elop is removed from being in charge. Expect that within one year.”

One year, then.

Obviously, such drastic measures, if this analysis holds true, will not be taken next week. It will be a couple of quarters at least for more job cuts to happen. But it does show that Satya Nadella is not afraid to make drastic changes, when and where need.

What do you folks make of this? Just some babbling analyst, or do you feel Microsoft needs to reduce the headcount further? And of our friend Stephen Elop? Do comment.

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