Microsoft Job Cuts: Should Middle Managers Worry?

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 15 (Bloomberg) -- Mashable's Pete Pachal and Bloomberg's Cory Johnson discuss Microsoft CEO Satya Nadella's move to reduce redundancies at the company with Trish Regan on "Street Smart." (Source: Bloomberg)

Technology editor.

Is this the result of this m&a activity?

You think about a nokia deal.

How much of the reductions were related to that?

Nokia, 30,000 employees.

They were already about 100,000. there will be redundancies.

Part of this is reshaping the culture of microsoft, a sprawling company in many different areas.

He wants to focus on leisure life, cloud, mobile, productivity, and cut away the rest.

How much of that could be related to the culture?

This is a company that is a technology company, but frankly, think of microsoft.

You see where the shares have been over the course of the last decade.

It feels a little bit more like an industrial company than a technology company.

My changing who is there at the company in fact change the culture?

Stocks as well.

I do not think of the company as a stock.

I think in terms of the product that people spend a lot of time on.

One of the things you get, in terms of the sense of the culture, is a place where people build long careers.

There are people who work there 15, 20 years, which you do not typically see even in technology companies that have been around a while.

Faced with young people, from a product per folio standpoint, you have a couple of different approaches.

Satya nadella, an insider at microsoft, got his job because of success with cloud-based products.

They have a strong cloud-based offering.

Give users a reason to buy the latest updates.

The focus is aligned with the product portfolio.

All of the people they have had in the past have sold things in different ways.

Might not be up for the task.

The marketing staff might be seeing a different focus.

You see satya nadella putting his stamp on the company.

Pete and i were talking earlier about that culture.

It is wonderful to have a company where people can build entire careers, but as he pointed out, it is very different than we typically see in technology.

How does microsoft or intel stay as edgy, stay as competitive, when people really feel like they are going there for eternity, as opposed to going there for a period in time?

I have to start cutting away layers.

Nadella hinted at this in his mission statement last week, when he talked about decision-making.

He definitely implied there were too many people in decision-making processes, and we need to eliminate some of those people.

He seems to be implying that middle management has gotten out of control.

Too many cooks into many kitchens in microsoft.

Some of those people have to go.

What do you see coming out of the company as nadella focuses on the cloud?

While he was in consideration, he had the job going away.

It was a big reorganization taking place.

There has been a shakeup going on.

In the last week, they have told me things have more clear about what they are offering, who they are reporting to.

The famous illustration of the org charts of all the different countries in silicon valley, which comes to mind, it was a comical thing, back of the envelope, that showed apple to have a lot of people reporting to one guy in the center.

Microsoft had lots of different divisions, but rather than reporting structures, everyone had a gun pointing to everyone else.

Microsoft famously has not gotten along with the rest of microsoft.

You imagine this as a way of taking away fiefdom, having everybody working together.

That is not a pretty picture.

Or he johnson, thank you very much.

Steve, great to have you here.

What do retail sales results say

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change