Jim Cramer and his team on CNBC discussed Microsoft Corporation (NASDAQ:MSFT) and its restructuring plans that have left a lot to be desired about the global software giant’s future.
The company announced workplace restructuring where it intends to eliminate as many as 18,000 positions over the next year. But is cutting jobs enough to turnaround the company? Jim Cramer weighed in on the matter.
According to Cramer, Satya Nadella, who took over from Steve Ballmer earlier this year as the CEO of the software powerhouse, is sending out a signal that a new Microsoft Corporation (NASDAQ:MSFT) is emerging, and they are not going to remain the old Microsoft entity that people have known for years.
As a matter of fact, the announcement of the massive job elimination at Microsoft Corporation (NASDAQ:MSFT) followed a detailed memo that Nadella sent to Microsoft employees while calling for a change in attitude and approach in the company’s operations. Therefore, besides the job cuts, to begin with, there might be some more organizational changes on the way for Microsoft, or so Cramer thinks.
“What this is saying we have the wrong workers. We have the wrong workers at the wrong place at the wrong time, and the market knows that,” Cramer said of the planned job cuts.
To Cramer, Nadella is turning out to be a tough CEO in that he has no passion for anybody, referencing to his approach to righting the company through a massive layoff that will obviously cut costs and boost earnings.
As to whether simply cutting jobs is enough to put Microsoft Corporation (NASDAQ:MSFT) back on track, Cramer thinks Nadella has just begun, and he is not likely to be like Ballmer, who ended up being a kinder and gentler CEO.
“I think there is a belief Steve Ballmer was actually a kinder, gentler CEO than we thought. This one [Nadella] has no passion for anybody, hit the road,” observed Cramer.
In first quarter, Microsoft Corporation (NASDAQ:MSFT) was one of the stocks that boosted ValueAct Capital, a fund managed by Jeffrey Ubben, which appreciated 9.7% in Q1 after payment of fees and expenses. The fund held 71.29 million shares of Microsoft Corporation (NASDAQ:MSFT) at the end of the first quarter.