Microsoft Corporation (MSFT)’s CEO Wants Employees to be Bold and Ambitious

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Changes Galore in Microsoft Corporation (NASDAQ:MSFT) before the Q4 FY 14 earnings and looks like Satya Nadella wants change in attitude and approach to begin with. There might be more organizational changes and may be job cuts.

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Bloomberg’s Betty Liu was reporting the memo by the CEO to Microsoft Corporation (NASDAQ:MSFT)’s employees which said that organizational changes are needed to turn the company around. She also said that people familiar with the plans say that job cuts are likely. Nadella wrote in his memo that employees should be bold, ambitious and to focus on the core that is unique to the company.

“According to people familiar with the plans, job cuts are likely.” Liu said.

In a recent interview with Bloomberg, Nadella said that Microsoft Corporation (NASDAQ:MSFT) has to make products that people love. He said he will speak more about this on July 22nd when the company reports earnings for Q4.

Microsoft Corporation (NASDAQ:MSFT) is looking to cut the jobs in the advertising department, sales and marketing. Though the company is not specifying the magnitude, the number might be in hundreds. This might be due to the initiative to control the cost on PC sales due to the slowdown in PC market. The reduction in marketing is also due to the high cost incurred in marketing of Windows 8. The company has spent over $6.2 billion in online campaign for windows 8 which didn’t prove very profitable and it was bound to lead the termination, especially with the new shift in culture.

The stock of the company has been on upside on Friday. Nadella wants a shift in culture and he wants people to be more creative and focus on their strengths.  The key investors in Microsoft Corporation (NASDAQ:MSFT) are Valueact Capital with over 71.2 million shares and Eagle Capital Management with over 33 million shares as of march 31st 2014.

Disclosure: None

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8 Comments

  1. Let us hope that this is not a continuance of previous culture at Microsoft but rather just letting the people know that if you think you can just sit back and ride the work of others to the top you will be let go. I was told once that they did not accept ideas from the public on new ideas. I gathered that if it wasn’t their idea then it was not a good idea. Sad when your customer base is made up of so many diverse people who see things from different angles and can give some really great ideas to them to build upon.

  2. In Redmond, layoffs mean profit. When companies layoff ten-thousand; stocks go up. The speech was designed for ONLY this since they have already been
    “all-in”
    mobile and cloud for almost ten years! This announcement makes it clear that MS has not changed but will continue its original path of follow the market leader.

    Besides, they have already lost mobile since other types of devices are already coming out that eliminate the phone, yet MS is just starting the phone when the tech has already maxed out and evolving out. Then the cloud, a marketing term for something that has always been around ‘the internet’. Putting a funny word attached to something the world created makes them look even more detached. Trying to compete against the bells is another hilarious move by college boy.

  3. Michael DeKort on

    Microsoft is yet another example of the massive inefficiencies in commercial IT. They actually and quite incredibly rarely use best project management or engineering practices. Yes I know how that sounds. It is quite flabbergasting. It is the dirtiest secret in the industry. It occurs because of the massive misconceptions about actual best practice across virtually all of commercial IT. Most of these people have never used the practices or used them right. As such they THINK what they do is actual best practice when it isn’t even close. Yes these companies make money. But ONLY when their innovation hides their massive inefficiencies. Rarely do these companies measure productivity, defect density, rework or know how their projects or their critical parts perform against cost and schedule. They buy in to the horrible notion that you cannot react to change or innovate if you exercise cost, schedule, scope and performance due diligence. RUBBISH. And pure Agile is the worst problem of all. Purposefully ignoring top level scope, architecture, cost and schedule so you can plod through purposeful serial discovery will cost you massive amounts of lost time, money and probably doom the efforts. If you used the actual best practices your productivity would increase by at least 30% if not double in some cases. And innovation would blossom not be held back.

    Here are a few litmus tests

    – Not using EVM
    – Not knowing your teams productivity, defect density or rework rates
    – Not knowing requirements volatility
    – Not root casing all defects
    – Use of test based scope information vs diagrams
    – No RTVM with code and test coverages tracked
    – Not having the BAs test to make sure they gt what they asked for
    – Not showing the devs the system test drafts or not writing and reviewing tests for accuracy and completeness first then performing design, code and test
    – No real SW CM tool. Versioning is not enough

  4. Except for those that used to be part of Nokia, who are going to be shown the door by the dozen. Thanks, MS, for ruining yet another good company.

  5. Miguel Gallegos on

    In other words … “attempt to mimic the competition as fast as you can, so we can be part of the herd technologies emerging … we need to be perceived as COOL … that’s what it’s all about!”
    .
    Too bad. A more productive strategy would be to stabilize and expand their base with killer extension of Office and claim the Enterprise Arena.
    .
    I could go on, but I can’t wait to see a bunch of staid engineers attempting to run as fast as a pack of 23 olds attempting to gain street cred by being an also-ran.

  6. Advertising for this product is mostly irrelevant, and Microsoft employs many people with frivolous ability. The company can be seen mostly as charity, which is great and gives people the opportunity to build experience and carrier-skill — and move elsewhere. It’s a cycle in which there is limited capacity, others have to go so new ones may eventually come in.

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