Will a New Microsoft CEO Stick to Ballmer's Plan?

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Aug. 27 (Bloomberg) -- Microsoft is moving to reassure employees that a reorganization plan by departing CEO Steve Ballmer will go ahead. Cory Johnson has more on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Cory johnson is back with more on the structure of this new microsoft.

Interesting that sweeping changes would be made right before his departure.

I was at a company announcing layoffs.

One of the employees says, how do you expect us to do any work if we know there are layoffs coming soon?

If she was not on the top of the list before, she is now.

Wall street reacted , the stock took a big bump -- the stock also took a big bump when they announced he was leaving.

The stock goes up because everyone thinks it will be different.

The people at microsoft have to get up and do something.

It is the zombie reorg.

The guy leading it may be part of the walking dead.

I need to keep people believing that this will happen when the new manager who comes in to run the business may be called on to do some very different things.

I am wondering what the reaction was from the market when they announced the real org in the first place.

The stock got a significant bump.

They want new leadership.

There is your bump.

It was announced that -- specifically, i want to have more focus on hardware, more focus on the cloud, and less focus on pcs.

The idea that he has put forward, those will be the focus for microsoft going forward regardless of who is in charge.

To the business results show a sign of the slow down?

In spite of the success they have had in the cloud business, you have seen gross margins change dramatically.

They are making hardware.

You have to make a new widget every time you sell something.

That translates into less of an operating margin.

Operating margins have also come down for microsoft.

That will happen when they move into the hardware business.

What is the business side going to be?

What are the results of the company going to be?

There has to be a lot of confusion, especially going into bonus stock season.

That is what makes the decision for a lot of people as to whether they should stay or not.

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

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