Microsoft (NASDAQ:MSFT) CEO Satya Nadella believes big organizational changes along with more focus on engineering would help the company to rise back to glory.
In a 3,105-words memo written and distributed on Friday to all its employees, Microsoft’s new CEO mentioned that the company will be focusing more on cloud, mobile and productivity instead of devices and services.
Satya Nadella’s memo reads:
“Over the course of July, the senior leadership team and I will share more on the engineering and organization changes we believe are needed. Nothing is off the table in how we think about shifting our culture.”
When Nadella was appointed as the head of Microsoft in February, he signaled on more focus on innovations. Watch the video of Satya Nadella‘s first interview after becoming Microsoft’s CEO – – embedded below.
Meanwhile in his memo to employees, he promised to modernize the engineering process and visualize its operating system as a cloud-based platform with integration of Microsoft Azure cloud hosting platform.
Bloomberg noted that Microsoft promised to save $600 million in annual savings for 18 months when it acquired the Finnish mobile company Nokia. The “savings” might be referring to the possible layoffs in the same areas of both the companies which overlaps with each other.
The re-organization of engineering division could see the job cuts because of the new software development system where the developers itself can be seen testing for bugs and other issues. That means, Microsoft will be reducing the number of developers, testers, analysts and program managers in order to meet the target.
As of now, Nadella hasn’t publicly released any statements related to the job cuts; he pledged to release more details on the conclusion of his memo during the fourth-quarter fiscal earnings results.
FBR Capital Markets’ analyst Daniel Ives said to Reuters:
“With recent chatter on the Street about potential head count reductions at Microsoft it was important for Nadella to be visible and set an optimistic tone heading into the next few months, especially on the heels of the Nokia integration.”
Currently, Microsoft has nearly 130,000 employees and analysts are not able to assume the number of layoffs in future, but predicted a first major job cuts in past 5 years.
Stay tuned for more updates on this story. You can read the whole 3,105-words memo that has been posted to Microsoft Website from here.