Thursday, 17 July 2014 04:49
Microsoft recently announced that they were axing a bunch of employees and the stock market responded - by going up. That's right, the stock market celebrated unemployment by pushing the price of Microsoft stock up higher than it has been in a decade. With all the buzz around their manifesto lately, there may be some good stuff coming from Microsoft over the next few years. People seem optimistic at least - well, those that still have jobs.
While there is no doubt that Nadella is changing the way the company is operating and is installing a new "challenger mindset," Wall Strett loves layoffs from a profitable company; investors traditionally look at layoffs from a profitable company as a way to streamline operations and reduce unnecessary expenditures. When Microsoft bought Nokia's devices arm, it also obtained more than 25,000 new employees; with that many acquisitions, there are overlapping roles that results in unnecessary overhead for the company.