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Microsoft plans more layoffs

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Satya Nadella continues to reconfigure the new Microsoft, and specifically to root out the Nokia acquisition and other legacies left behind by former CEO, Steve Ballmer. The newest round of layoffs are coming as early as Wednesday, according to Nick Wingfield at the NY Times. These layoffs have been long anticipated, and confirmed by Nadella’s ‘touch choices’ email in June. At that time he finally pushed out Stephen Elop, the former Nokia head, and reorganized his senior team.

As I wrote at stoweboyd.com on 18 June (prior to the reboot at Gigaom Research, for the record),

Satya Nadella continues to consolidate Microsoft’s formerly fragmented organization, announcing in a company email that a number of executives – most notably Stephen Elop, the former CEO of Nokia – are leaving the company. Elop’s bad news, and it’s far overdue.

EVP Terry Myerson is getting a bump up to heir apparent, running a new Windows and Devices Group, a combination of the Microsoft Devices Group (which Elop was running) and the Operating Systems Group (which Myerson headed). This group controls Windows, Xbox, Lumia, Surface, and Hololens.

EVP Scott Guthrie is accumulating the Microsoft Dynamics Group – which was running in a standalone fashion under Kirill Tatarinov– underneath the Cloud and Enterprise team. Alex Wilhelm thinks the Dynamics team is being fragmented into various of Guthrie’s groups.

EVP Qi Lu of the Applications and Service Group is being handed the company’s education activities that Eric Rudder (bye bye) was running.

Mark Penn, one of Ballmer’s favorites is out of his strategy role. Penn is starting an equity fund with Ballmer’s support.

So with these changes, the senior leadership has twelve execs:

  • Satya Nadella, Chief Executive Officer
  • Chris Capossela, Executive Vice President and Chief Marketing Officer
  • Kurt DelBene, Executive Vice President, Corporate Strategy and Planning
  • Scott Guthrie, Executive Vice President, Cloud and Enterprise
  • Amy Hood, Executive Vice President and Chief Financial Officer
  • Kathleen Hogan, Executive Vice President, Human Resources
  • Peggy Johnson, Executive Vice President, Business Development
  • Qi Lu, Executive Vice President, Applications and Services Group
  • Terry Myerson, Executive Vice President, Windows and Devices Group
  • Harry Shum, Executive Vice President, Technology and Research
  • Brad Smith, Executive Vice President and General Counsel, Legal and Corporate Affairs
  • Kevin Turner, Chief Operating Officer

Notice that with departures of a bunch of men, the female leadership is now 25%, which I bet is a high for the company.

Maybe Microsoft should sell back the smartphone division to Nokia, which has announced plans to start up cell phone production, again.


Update: 9:56am 2015-07-08

Microsoft has announced the cuts: 7,800, mostly in the phone business, and a write down of $7.6 billion linked to the acquisition of Nokia Devices and Services business.