Reports are that Microsoft will cull up to 18,000 jobs in a major shake up. Many of these job losses will come from the newly acquired Nokia business arm, with the aim of reducing overlapping roles. This should make Microsoft more nimble and able to focus on the areas where it truly generates profit.
Many analysts are positive about the changes because it will reduce the number of distractions Microsoft has had over previous years. Microsoft is in a position where it is healthy and generating good profits, so the move is seen as a positive one, positioning the company for the challenges the new era that cloud and mobile are bringing to technology.
Although making plenty of cash, Microsoft still faces strong challenges from other players like Google and Apple in its traditional markets. However, Microsoft’s investment in technologies like Office 365 and Azure do position it well to take advantage of the move away from traditional complete on premise computing. There is however still lots of work that Microsoft needs to do to migrate many customers from older functioning software to its latest offerings.
The overall employment trend is that the innovations and efficiencies that technology provide allow businesses to generally have less employees. It also allows much of the work to be completed outside traditional work environment. These changes bring both challenges and opportunities for all businesses but also someone like Microsoft.
These changes will take a while to work through the system but what they do indicate is that major shifts are taking places within Microsoft.