Anytime a company cuts that many positions, it doesn't matter where you work, that is a huge signal of change. Why would a company let that many workers go if nothing in their day-to-day business was changing? Across the board something is going on and they are making adjustments for possible growing room.
Yes, Microsoft is gearing up for some big changes in the near future. The recent lay-offs are just the
first change that the company's new chief executive Satya Nadella plans to make as an attempt to put Microsoft back on top of the market. In order to compete with companies like Amazon, Google and
Apple the company is expected to make a series of remarkable changes ov
Cutting down employees will likely negatively affect share price, something that managers will only do when it is absolutely needed. Microsoft have signalled something is changing by announcing such a large job cut, whether it be streamlining the organization or closing down and merging certain offices. Either way, managers would not wish to signal to the market such an action without big reasons behind it.
Microsoft is just a dinosaur of a tech company trying to keep up with Apple and all the other new tech companies out there. They are cutting costs as besides the Xbox, Microsoft has done very little out there in the tech world recently. The surface will never challenge the iPad and Microsoft will continue to decline unless they come up with a new tech innovation.