At least, that’s what Microsoft CEO Satya Nadella is saying. By reducing the number of employees in various divisions, Micrsooft’s teams can work more closely and freely, and allow the company to pursue new ideas more easily. The part of MSFT most affected by this change will be the Nokia’s Devices and Services business, which it acquired for $5 billion earlier this year, with 12,500 “professional and factory positions” removed.
There’s also belief that the Nokia X program (Android running on low end hardware) could be converted into low-end Lumia Windows Phones, while the Xbox and Surface divisions see “limited change”.
It’s a large and complex restructuring, but it might just be what Microsoft needs in order to have the swiftness it needs to compete and innovate, rather than just having an obvious presence.