MSFT Job Cuts

Microsoft is expected to cut thousands of jobs, most likely this week, just ahead of its Q4 fiscal 2014 earnings report next week.

Expectations are the Nokia handset division, which Microsoft officially acquired earlier this year, will bear the brunt of the cuts. (Microsoft acquired 25,000 Nokia employees as part of that transaction, adding to its workforce of close to 100,000.) Beyond those possible cuts, Microsoft also may cut more jobs in marketing across the company, Bloomberg reported on July 14, as it did in 2009 when it shed more than 5,000 employees.

Microsoft CEO Satya Nadella is working to focus the company on fewer, key areas where it has a better chance of winning. The areas where Microsoft is trumpeting its wins at this week's Worldwide Partner Conference are largely in the cloud -- with Azure, Office 365, Dynamics CRM Online -- and Office, Windows Server and business intelligence/SQL Server on premises.

The areas where Microsoft is struggling right now -- in terms of market share, positioning or both -- are in Windows on non-PC form factors (in other words, Windows 8, not Windows 7), Windows Phone (both hardware and software), Surface tablets and Xbox consoles.