Microsoft is expected to announce 6,000 job cuts today, but the results are already being felt before the pronouncement. The company’s share are now the highest they have been in a decade.
The past few weeks have been rather good for the software titan.
In fact, the stock has been steadily climbing ever since former CEO Steve Ballmer left, and Satya Nadella took over the reins. And even though the new leader has outlined a few policies, it will be a while before they bring in the results.
But the news of layoffs is pleasing enough for most investors — provided the company is profitable. It shows that the company in question is streamlining operations and reducing unnecessary expenditures.
And Microsoft, with its total of 127,104 employees, is already one of the largest companies in the world in terms of workforce. More than 25,000 of these arrived after the Nokia acquisition was finalized, and this resulted in overlapping roles for Redmond.
Loss of jobs are never a cause of merriment, but there are times when bitter pills have to be swallowed.
Nevertheless, this is showing in the stock prices, with the market closing at $44.08 yesterday, which is quite an improvement from the middling 30s that Microsoft shares traded at this time last year.
Be interesting to see where they are after July 22, when the company announces its quarterly earnings.