Microsoft Job Cuts Coming? Nadella Making Changes

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 15 (Bloomberg) -- Microsoft is planning its biggest round of job cuts in five years, as the software maker looks to slim down and integrate Nokia Oyj’s handset unit, people with knowledge of the company’s plans said. Bloomberg’s Anurag Rana speaks on “Bloomberg West.” (Source: Bloomberg)

This could be happening imminently.

How big a deal is it?

You are bound to see a lot of reductions.

More importantly than that, the new ceo has a vision to change microsoft into a cloud first company.

With that will come certain changes, like it or not, and that would be job reductions in certain areas.

The ceo put out a memo about changes to come.

It was the highlight of my vacation.

What is happening here?

He is trying to put his stamp on the company.

He was the inside candidate, hand-picked, a guy who would follow the board's decision.

Doing the nokia acquisition, making decisions about cash on a handful of decisions.

His hands of been largely tied.

I have been talking to a handful of microsoft people, and they are really talking about the things they are seeing inside the company, certain people moving ahead of certain sales operations and making decisions going forward.

They are starting to make them move about his personnel and his team that will run things.

This is a very big move to do all at once.

Not everybody likes this.

Ibm, for example.

For hewitt packard, in norman s layoffs.

Let's talk about that.

-- enormous layoffs.

Let's talk about that.

Hewlett-packard has been laying off people by the tens of thousands.

If you look at revenue per employee, companies like google and facebook are nowhere near what microsoft is, and microsoft was once on the cutting-edge of this thing.

Hewlett-packard, a little bigger.

If you buy from hewlett-packard, and army will come to try to sell you more stuff.

There might be one microsoft person who works with a company for a short time, where's the i.t. departments aren't on their own.

-- are on their own.

I think this is more about, rather than changing the way the business works, changing personnel and direction a little bit for this company.

Talking about trimming the fat, where is the fat?

What divisions and areas do need to be cut down?

I think it's going to be very interesting to see when this finally comes out.

If you were to look at where this company has been for the last several years, and the whole world is moving more toward cloud and enterprise mobile devices.

The question is going to be, where are they going to invest a lot of these resources going forward?

You can safely assume the other areas will probably see some layoffs.

So, he has been doing a lot of interviews lately.

He talked to the new york times.

He highlighted efforts in ai.

Is that something that could be a big part of microsoft?

The nuts and bolts of microsoft is selling windows and selling office.

When you talk to microsoft salespeople, they will tell you to buy the next windows upgrade.

They will try to get you to buy the next microsoft office.

That is where the real money is.

They appear to be cutting-edge because they want to bring customers along and get them to buy.

There was a time you could get a corporation to buy all your microsoft's us.

That is a really big deal for this company.

Those kind of incremental changes are what microsoft does every few years.

Increasingly, they're going to have to have some kind of glittery stuff on the edges to get microsoft to be the kind of business where they need to pursue the latest upgrade.

Needing to be on the cutting-edge and appearing to be on the cutting-edge are two very different things.

Can microsoft be on the cutting-edge when office and windows are there two biggest things?

That is what i am seeing as they push new blood into a behemoth that pre-much dominates all the entire operating systems on the computer.

As the world moves to cloud, can they make it?

I think that is going to be the biggest question and challenge for the new ceo.

Ok, thank you both.

The founders fund is known for

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