Microsoft CEO Satya Nadella sent around an email to employees last week. For those reading between the lines it was a clear message that job cuts were coming. Today they made it official. Microsoft will cut up to 18,000 jobs in the coming months.
I think he's doing what needs to be done, and I suspect this will setup Microsoft to be more successful in mobile and cloud services.
I've been following the technology sector for a long time. Usually when a company announces major job cuts it means they are in trouble, but it would be a sweeping generalization to say this is always the case. I remember when BlackBerry (then Research In Motion) announced a significant round of cuts back in the early 2000s. Analysts and investors freaked out. But in reality the company was just cleaning house as it prepared for even faster growth. The business went on to hit incredible new highs. Job cuts are not always a bad sign.