Tag Archives: nok

Microsoft investors cheer bigger-than-forecast job cuts

A flurry of pink slips put Microsoft (MSFT) in the green on Wall Street Thursday as investors signaled their approval of the software giant’s record number of job cuts. Microsoft CEO Satya Nadella said the company will cut as many as 18,000 jobs this year as it looks to digest its acquisition of Nokia’s (NOK) mobile phone unit and make the company leaner overall. It was Microsoft’s biggest employee reduction ever, topping the 5,800 jobs Microsoft cut in 2009. The 2009 cuts represented about 5% of the workforce at the time. This year’s cuts amount to 14% of the company’s 127,000 workers as of June 5. Microsoft rose as much as 3.6% to 45.70, its highest level since the dot-com collapse of March 2000, in the stock market today. But in early afternoon trading Thursday, Microsoft had retreated to just below 45, a gain of 1.9%. Of the total job…

Microsoft plans major job cuts after Nokia acquisition

When Satya Nadella became Microsoft’s (MSFT) new chief executive, he inherited the $7.2 billion acquisition of Nokia’s (NOK) mobile phone business from his predecessor Steve Ballmer. Now it’s Nadella’s job to make the deal make financial sense. The first order of business is job cuts, which are expected within a week. On Aug. 23, Ballmer announced his plan to retire once a successor was chosen. On Sept. 3, he announced the company’s intent to buy Nokia’s handset business. Nadella took over as CEO on Feb. 4, and the Nokia acquisition closed on April 25. The purchase of Nokia’s mobile phone business was seen as Microsoft’s attempt to become more like Apple (AAPL) and control the entire phone development and manufacturing process to improve the experience for consumers. Previously, Microsoft licensed its mobile operating system to handset vendors and hoped for the best. But with Surface tablets and Nokia…

Microsoft more open to acquisitions under Satya Nadella

Mergers and acquisitions may perk up at Microsoft under new CEO Satya Nadella, UBS Securities said in a research report Tuesday. Top financial executives at Microsoft (MSFT) report that Nadella is “more open-minded about M&A, recognizing the innovation happening within the industry,” UBS analyst Brent Thill wrote. Nadella also has “a greater sense of urgency for Microsoft to address key technology trends for its customers.” Microsoft completed its $7.2 billion acquisition of Nokia ‘s (NOK) handset business on April 25, but that deal was initiated under Nadella’s predecessor, Steve Ballmer. Nadella became CEO on Feb. 4. Microsoft is sitting on $88 billion in cash and short-term investments and generates $25 billion a year in free cash flow. It could use the cash to boost dividends and stock buybacks, but acquisitions remain a wildcard, Thill said. In a sit-down with Microsoft executives, Thill said they noted changes under Nadella in the…