Will Nadella start cutting the fat off Microsoft ? Are major job losses in sight ?
Now, don't get me wrong. Microsoft is not experiencing any financial troubles, on the contrary, they are still racking in record quarters. But whilst it's unusual for a company to start slashing jobs when it's still prospering, at roughly 130,000 employees (with Nokia devices taken into account), it may in fact do it major good, make it leaner, more focused on things that matter and faster.
People losing jobs is always regrettable, but I am getting the feeling there are just too many 'legacy' job roles at Microsoft. That is, people acquired throughout 90's and into early 2000's there to service and support dated systems/methods of doing business and interacting with clients in general. Not to mention software automation, they should replace people with software in those legacy roles and those doing monkey work where possible.
I am not saying do it over 6 month or similarly short time frame, but none the less I feel Ms should pressure clients to move into cloud services and provide them with intelligent software to manage all resources, heck even foot the bill for some transitions, which would be offset in reduction of supporting job roles. For legacy systems reserve smaller 'skeleton crews' to service and help those that are sitting on legacy systems and or housing the infrastructure locally. Lay own optic fibre like Google across cities and provide a cloud PaaS/Saas experience to businesses and consumers that is truly unrivalled and works even better than having those assets on local infrastructure and machines. Focus on delivering the desktop as a service to enterprises and move away from supporting/allowing for it to be deployed on local machines.
It's just hard to believe that there aren't many roles out of those 130,000 that cost more money than they bring in and or can't be intelligently made redundant. Ultimately I would want to see Ms become a lean, mean machine at around 40k employees, that manages legacy assets/liabilities with automated software whilst focusing extensively on enterprise cloud and state of the art consumer technologies, responsive and constantly experimenting with concepts and most importantly delivering and shipping them on a timely manner. I am going to go out on a limb here and predict that Nadella will start cutting jobs at a rate not seen before at Ms, though this should not be seen as a reason to panic.