Microsoft announced the biggest layoffs in its history Thursday, saying it will cut up to 18,000 jobs or 14 percent of its staff as it works to cut down on management layers and integrate the Nokia cellphone business it bought in April.Thought we were locked-in to Microsoft's old products.
FBR Capital Markets analyst Daniel Ives said the cuts were about double what Wall Street was expecting.
But he said they were necessary to streamline operations and clean up a bloated management structure.
"Microsoft needs to be a 'leaner and meaner' technology giant over the coming years in order to strike the right balance of growth and profitability around its cloud and mobile endeavors."Which markets didn't even exist back in the 1990s.
Microsoft has been is seeking to meld its software and hardware business into a cohesive package, similar to rival Apple. In a letter to employees, Executive Vice President Stephen Elop said the company will drive sales of its Windows Phone by targeting the lower-price smartphone market with its Lumia devices. It also plans to develop more products for the higher-end smartphone segment.Whither Gary Reback?