Microsoft Corporation (NASDAQ:MSFT) has just announced its biggest job cut of the decade. New Microsoft Corporation (NASDAQ:MSFT) CEO, Satya Nadella, announced that the company is going to fire 18,000 employees. Discussing this announcement in a program on Bloomberg, XLR-8 Founder, Robert Nardelli, said that this is a bold but smart move by Nadella.
“I think, you know, this shows really courageous leadership, the analysts, investors have been concerned about making Microsoft a little leaner, may be reducing some of the bureaucracy, increasing the speed of decisions, and .. I think this is a, unfortunate for the affected employees but probably a good move for the organization overall,” said Nardelli.
He said that Microsoft Corporation (NASDAQ:MSFT) will surely give severance packages for the affected employees in order to compensate for the damage which is done because of this massive job cut. He thinks that this decision was necessary for the company and Satya Nadella must be given full credit for the brave and bold decision.
Answering the question on how Satya Nadella will keep the morale of his employees up after this difficult and bold decision, Nardelli said that Nadella will have to work very hard and he must communicate with every employee, give everyone utmost respect and explain the logic of this decision to all the employees so that their confidence in the leadership doesn’t get diluted.
“Certainly He has to over communicate the logic on this, he has to treat each individual with dignity and respect, as he has to make these gut-wrenching decisions, and then he has to show how the benefit of this will improve the overall financial sustainability and the … you know, ability to move forward with new innovation, new ideas and really strengthen the financial position of Microsoft overall,” said Nardelli.
Nardelli said that Microsoft Corporation (NASDAQ:MSFT) new CEO is doing what he promised, which was to make Microsoft a linear, less bureaucratic Company. He advised Nadella to stay strong in the coming months because bold decisions are really hard to make and one cannot explain the logic and intent behind such decision. He said that such decisions are sometimes really necessary to maintain the economic agility and growth.
Disclosure: None
