Analyst Foresees More Job Cuts At Microsoft

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.

  • Ted Smith

    A blunt, if not a little biased opinion. Obviously, Nokia wasn’t setting the world on fire, but I think this seems like a worst case scenario kind of outlook. Overall though, more job cuts from any branch wouldn’t really shock me if a certain product begins to falter.

    • Ray C

      I agree. This seems like a worst case scenario type Outlook. Microsoft doesn’t need to go into panic mode, but it’s possible the company is still too large

      • Jake

        We’re all in agreement. Still way too early to worry about the next cut, but also too early to think Microsoft’s in the clear from job cuts. If tablets falter more, or Xbox struggles, then there could be cuts there. A lot depends on the sales obviously.

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  • Mike Greenway

    hog wash!

  • WillyThePooh

    I do agree that after Nokia completely merges into MS, Elop will be let go. He is not a brilliant head anyway. Besides, he is the CEO who allowed Nokia to start Android phone project right before merging with MS. That’s betrayer in MS eyes.