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Is Microsoft’s axing of 18000 jobs justified?

Microsoft is presently the largest hardware firm in the world. Microsoft reached this status with the acquisition of the mobile phone maker, Nokia. But it is the belief of many analysts that Microsoft, under Satya Nadella is not pleased with the position. Microsoft shares a glorified history with development of features like Cloud computing, operating system, applications, etc. But the fact that Microsoft was slowly turning into a hardware firm rather being a software firm was hurting the reputation of the company. Many experts also believed Microsoft was literally at a point of saturation where there was a lack of innovation and a different thought. It seems that with Satya Nadella the tide is turning for the tech giant.Microsoft set to axe 18000 jobs: Justified?

Thus speaking of change, Microsoft has taken one of the most important decisions of their recent times. The company has decided to lay off approximately 18,000 employees. The bulk layoff will be made from among the employees who migrated from Nokia to Microsoft when the company took over Nokia some time back. It is expected that approximately 12500 employees who migrated from Nokia to Microsoft, will be axed over the period next 1 year. But the question is will this layoff actually help Microsoft?

Will the layoff help Microsoft?

Well, it is quite a trick question for anyone to answer. But as a matter of fact, most of the experts are of the thought that this layoff will only help Microsoft for the better. Although, the layoff will not be a good experience for the ones who lose their jobs, but from the point of view of the company, Microsoft is in serious need of fresh brains. To add to it, keeping all the employees who migrated from Nokia would have added to the wage bill of Microsoft. The company itself has the manpower who can take Nokia to greater heights.

See Also: Microsoft shutting down Xbox Entertainment Studios as part of job cuts.

The layoff will also help the financial terms of the company as more investments can be implemented in improving the quality of service, advertisement etc. It might sound harsh, but Microsoft needs a change in the personnel at the working levels as well. Under Nadella, Microsoft has seen a good start as the company is back with some crucial decisions, looking forward to establish the glory that it had in the past. We would certainly love to see fast steps moving across features like cloud computing, etc.

See Also: Microsoft to kill Nokia X, McLaren, Asha and other budget phones.

The layoff of 18000 jobs will be seriously a very sad occasion for a large number of families in Finland as the layoffs will also include naïve factory workers as well. On the other hand it feels good to see that Microsoft, under Nadella is not fearful of taking big decisions. It will be interesting to see what lies ahead for Microsoft and Nokia!

See Also: Sony PS4 sales beat Microsoft Xbox One in June sales in spite of doubling sales.

About Wayne Murphy

Writer and specialized in Mobile Phones (iOS, Android, BB etc), who was with the TND team since it's inception. Other than Blogging, he is also pursuing his graduation on Business Management at CA, California University. All posts by Wayne

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