Although the rumour has milled around for weeks, Microsoft is yet to discuss its future staff reduction in detail.
During an interview, Satya Nadella, the CEO of Microsoft, appeared to make fun of the widely different word post he had published on Thursday. The message clearly read “Big changes are on the way.” Nadella was content with the manner in which Microsoft employees received his message.
The anticipated staff reductions are in particular likely to affect some 25,000 employees who the company included in the payroll after closure of the deal to acquire Nokia’s cellphone business for up to $7.2 billion in April, reported Cnet.
Rick Sherlund, who is a Nomura Securities analyst and a veteran Microsoft watcher, said they read the menu that was addressed to the employees on Thursday. He pointed out that the company gave the impression that it was making organizational changes to cut down management layers, stimulate innovation, fix accountability and implement organizational changes.
Nadella estimated that Microsoft could reduce costs by about $1 billion through a 25-percent reduction in the Nokia business.
In his letter, Nadella promised the public of a more nimble Microsoft. He intends to “streamline” the engineering process and cut down the amount of energy and time it takes to get things done.
“You can look forward to have fewer processes though more focused and measurable results. You will also see fewer people involved in decision-making and more emphasis put on accountability,” said Nadella.
Nadella is no longer the “new” boss at Microsoft though he intends to make it clear soon that Microsoft will be his company.
Microsoft refused to comment on Sherlund’s report.