Satya Nadella
Microsoft exceeded its sales estimates this quarter as CEO Satya Nadella tries to re-establish the companies position among technology companies. Total revenue for Microsoft in the first fiscal quarter was $23.2 billion, beating the analysts projections of $22 billion. This is largely due to the revival of Nokia, a mobile phone company which Microsoft acquired in early 2014, cloud services, and the success of the Surface Pro 3 tablet computer.
When Nadella took over as CEO in February 2014 he announced he would be implementing the largest job-cut in Microsoft’s history. The beginning of the intended 18,000 position job-cut began in July, when 13,000 workers were let go. Another 2,100 were fired in September. Nadella has a clear goal in mind of increasing profits and the reduction of positions is a step in the right direction. It will result in a significant reduction in costs and since Microsoft exceeded its sales projections this quarter, net profit was greater than expected at $4.54 billion.
Microsoft is making big changes to regain its position at the top of the technology industry and it’s all thanks to Satya Nadella’s vision. I think cutting jobs is a good way to allow Microsoft to become very focused as they try to climb back up to the top of the industry’s food chain. Microsoft will be able to reduce costs, but also regain market share because of the innovative products and services that appeal to a broad range of consumers.
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