There Is No Place To Hide For Microsoft

Call it the “new normal”.

Microsoft plans to announce a major new round of layoffs as early as Wednesday, as the company seeks to further cut costs in a shifting technology landscape,” The New York Times reported today.


At the end of March, Microsoft had more than 118,000 employees globally, The New York Times pointed out, but in my view that number is poised to fall at a fast pace, if its recent restructurings are anything to go by.

A year ago, Microsoft announced to have decided to cut up to 18,000 jobs, or about 15% of its global workforce — now the odds are short that layoffs will be in the thousands rather than in the hundreds.

Why so?

Nokia’s handset business has been a drag on its balance sheet in spite of 12,500 layoffs in that unit, while deals such as its latest partnership with AOL testify to a strategy that aims to boost returns by cutting costs.

Scary stuff for employees and Microsoft alike.

As a leaner, meaner machine, it must pay attention to competitiveness.

Good luck, Mr Nadella.

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