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.

Microsoft
SOURCE: MICROSOFT.COM

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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