Impact of Microsoft Corporation (MSFT) Mega Job Cuts Blodget

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Microsoft Corporation (NASDAQ:MSFT) job cuts have not gone well with the Finish government on the fact that Nokia Corporation (ADR) (NYSE:NOK) employs most of its employees in the country. The cuts are sure not to go well with the employees but on the other hand CEO, Satya Nadella, has reiterated they were necessary if the company was to become more agile and efficient.

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CNBC’s Jon Fortt maintains that the cuts were necessary from a structural perspective taking into consideration the fact that when two companies merge cuts are always necessary to reduce redundancy on job posts that overlap each other.

“From a structural perspective look even when two successful companies get together there are layoffs. Nokia was not successful you have to expect this,” said Mr. Fortt

Google Inc. (NASDAQ:GOOG) upon Acquiring Motorola according Fortt quietly initiated cuts in the company that were more rampant than what Microsoft Corporation (NASDAQ:MSFT) is cutting on Nokia Corporation (ADR) (NYSE:NOK). Satya Nadella is also reportedly trying to clear out the middle management at Microsoft with the 5,500 job cuts that are being initiated. The next big question according to Mr. Fortt is who Mr. Nadella will be bringing in from the outside, who he elevates and those he will let go especially in the top hierarchy of the company.

Microsoft Corporation (NASDAQ:MSFT) has been under immense pressure especially in its key business operations taking into consideration the amount of competition that has found its way into the industry over the past few years. The company’s core businesses of Office and Windows according to Mr. Hendry have been under huge existence threat.

Satya Nadella according to Mr. Hendry has noted the huge threats that the company is facing in its tradition businesses, and that is the main reason he is making a push for the cloud.

“Microsoft is under real threat, the good news is, Satya Nadella knows that and he is taking strong actions right from the get go,”  said Mr. Hendry.

Despite the job Cuts, Mr. Nadella has reiterated Microsoft Corporation (NASDAQ:MSFT) commitment to Nokia Corporation (ADR) (NYSE:NOK)’s Lumia products and more so on the integration of Windows products into Nokia chain of products.

Disclosure: none

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