It was about time someone shot it straight. While Steve Ballmer’s reign had its fair share of ups, the way the former Microsoft CEO conducted business during his final few years, left a lot to be desired.
He was at the helm when the company initiated the reorganization process, and although it is still going on, things took a radical turn when the new head, Satya Nadella fired up some 18,000 workers following the acquisition of Nokia’s devices and services unit.
Analysts, however, are of the unilateral view that such a painful decision was a must.
Daniel Ives, for example, said in a note to investors that what the new Microsoft CEO is doing right now is simply cleaning up the mess that Steve Ballmer left behind after his retirement in February.
The FBR & Co. analyst is of the opinion that no one can blame Nadella for this significant job cut:
“We believe Nadella is using today as an opportunity to make sure that Microsoft is ready and well-positioned to embark on its next chapter of growth around mobile and cloud.”
According to sources, all Microsoft divisions are impacted by these layoffs, and some even believe that more such layoffs are coming soon within a year’s time.
Interesting times ahead.