HOME     MENU     SEARCH     NEWSLETTER    
NEWS & INFORMATION FOR TECHNOLOGY PURCHASERS. UPDATED 4 MINUTES AGO.
You are here: Home / Microsoft/Windows / Are These Layoffs Best for Microsoft?
Build Apps 5x Faster
For Half the Cost Enterprise Cloud Computing
On Force.com
Are Nadella's Historic Layoffs Best for Microsoft?
Are Nadella's Historic Layoffs Best for Microsoft?
By Jennifer LeClaire / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
JULY
18
2014



The hammer is dropping at Microsoft. The software giant is laying off a record number of employees, including up to half of the recently-acquired Nokia staff. Microsoft earlier this week announced plans to cut as many as 18,000 jobs.

This is the largest cut since Microsoft laid off 5,800 workers in 2009 and will run through both factory and professional positions, including sales, marketing and engineering departments.

At the same time, Microsoft CEO Satya Nadella made it clear that Microsoft is also “adding roles in certain strategic areas.” Nadella was not specific about how many or what types of roles Microsoft plans to add.

Long Overdue

Industry watchers from various fields are sounding off about the layoffs. Some are applauding the move while others are speculating on how it will impact Redmond’s corporate culture.

Jonathan Hill, an associate dean of Pace University’s Seidenberg School of Computer Science and Information Systems in New York, told us though many technology “power users” have lost top of mind awareness for Microsoft, the company’s products including Skype, Xbox and, of course, Office are in consumers’ hands every day.

“Perhaps more critically, Microsoft’s backend cloud computing and coding tools including SQL Server, Visual Studio and Windows Azure run many of the apps that consumers and businesses depend on,” he said. “Nadella’s changes are part of an ambitious and long overdue revamp of what is clearly a healthy company with a strong foundation of core products and growing revenues.”

The Bottom Line?

Of course, employees are more than a little concerned. A blogger known as “Mini-Microsoft” said it’s a bit unknown how the cuts will affect Microsoft and the city of Redmond, but he’s concerned that there is now a level of stress and anxiety at Microsoft.

“First, the selfish stress about whether my job is affected. Then personal circle stress. Then partner collaboration stress,” the blogger wrote. “Then way out there general concerns about the company. And guess what: when folks are stressed and gossiping, they are not effectively -- er, excuse me, productively (?) -- implementing the latest strategy. Physiologically, they have increased cortisol and this time will turn into a fog.”

Meanwhile, Matt McIlwain, a managing director of Seattle-based venture-capital firm Madrona Venture Group, told the Seattle Times that Thursday’s layoffs were good for Microsoft and demonstrated that "Satya’s playing for long-term transformational change.”

“It shows he has a plan,” McIlwain said, where “there’s coherency between strategy, culture and organizational structure . . . and he has the clear authority to act on it.”

And Frank Artale, a managing partner with venture-capital firm Ignition Partners, told the Seattle Times the cuts won’t have much of an effect on the local tech and startup culture.

“The local startup culture doesn’t suffer or benefit from changes like this from Microsoft or any other large organization in the area,” he said. “What would affect the culture is, if Amazon or Microsoft suddenly decided they were going to raise salaries and open up 5,500 positions.”

Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY INTEREST YOU
ISACA® offers a global community of more than 115,000 IS/IT constituents in over 180 countries. We develop and deliver industry-leading certifications, education, research and business frameworks. We equip individuals to be leaders in the fast-changing world of information systems and IT - Learn More>
MORE IN MICROSOFT/WINDOWS
Product Information and Resources for Technology You Can Use To Boost Your Business

NETWORK SECURITY SPOTLIGHT
Sony is no stranger to breaches. Sony’s PlayStation Network was hacked in 2011 and attackers obtained 77 million user accounts. The latest attack comes against Sony Pictures Entertainment.

ENTERPRISE HARDWARE SPOTLIGHT
Doctor Who had K-9, the robot dog that accompanied him on adventures through space. Now, Mountain View has K5, a 5-foot-tall, 300-pound robot security guard patrolling in the Bay Area.

MOBILE TECHNOLOGY SPOTLIGHT
Beleaguered handset maker BlackBerry is targeting iPhone users with an offer the company hopes they can’t refuse -- $550 to leave Apple and switch to the new BlackBerry Passport.

© Copyright 2014 NewsFactor Network, Inc. All rights reserved. Member of Accuserve Ad Network.