Microsoft (MSFT +1.4%) plans to make significant layoffs under a plan to reduce the number of...

Microsoft (MSFT +1.4%) plans to make significant layoffs under a plan to reduce the number of its divisions to 7 from 60. Local media in Seattle reports that the restructuring will include a significant paring down of the marketing division.
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Comments (3)
  • bill d
    , contributor
    Comments (1893) | Send Message
    Unless you are really fat - this is the LAST place to cut.
    How do you think AAPL got where they are.
    1 Feb 2012, 03:38 PM Reply Like
  • Alex Pickard
    , contributor
    Comments (13) | Send Message
    Marketing does matter, but AAPL got to where they are at because the brain of Steve Jobs created products far superior to the competition's.
    2 Feb 2012, 03:48 PM Reply Like
    , contributor
    Comments (108) | Send Message
    I agree with that general business wisdom, but as a close watcher of MSFT, I think this is a good move. They spend bucket and buckets of money both in air cover and in their partner channel (which is where I sit) and believe me, there is a lot of non-productive fat to be cut. The streamlining of divisions should also make it easier to market in a more cohesive fashion. Some of that money should be redirected to the stores - which is a big part of how APPL got where they are. That will pay off in the long run. My only real concern is that it will take too long for the new, leaner model to emerge. I am long APPL and MSFT.
    1 Feb 2012, 04:23 PM Reply Like
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