Microsoft Corporation Sacrifices 18,000 in Its War With Google

Three Fools take to the Internet to discuss the implications of Mr. Softy’s massive cut, and what it means for its fight with Google.

Jul 21, 2014 at 5:15PM

This guy is changing everything at Microsoft, and that's probably bad news for Google. Credit: Microsoft.

Microsoft (NASDAQ:MSFT) announced plans to lay off some 18,000 workers, or 14% of staff, last week. Nokia will suffer the brunt of the cuts, but who else loses? Guest host Alison Southwick put this question to Fool analysts Nathan Alderman and Tim Beyers in this week's episode of 1-Up on Wall Street, The Motley Fool's Web show in which we talk about the big-money names behind your favorite technology, movies, toys, video games, comics, and more.

In an email memo, CEO Satya Nadella promised to start cutting immediately and expects that most of those who'll be moving on will know within six months. "My promise to you is that we will go through this process in the most thoughtful and transparent way possible," he wrote.

Nathan says the move, while painful, is a reflection of the situation in which Microsoft finds itself. Surface tablets haven't sold nearly as well as the company hoped, and Windows Phone badly lags Android and iOS. Not exactly what you want to see from a company that expects to be profiting from a "mobile-first" future. Eliminating distractions should help.

Tim agrees, noting that Nadella's boldness suggests that he understands that incremental change is no longer an option for Mr. Softy. Sweeping change has to be the norm, and it needs to come fast. Putting Office front and center -- and then building a multi-platform ecosystem to support it -- appears to be the priority. A wider war with Google (NASDAQ:GOOGL)(NASDAQ:GOOG) would almost certainly follow, Tim says.

Now it's your turn to weigh in. How do you rate Microsoft stock right now? Click the video to watch Alison put Nathan and Tim on the spot, and then leave your take in the comments box below. You can also follow us on Twitter for more segments and regular geek news updates!

Leaked: Apple's next smart device (warning -- it may shock you)
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Alison Southwick has no position in any stocks mentioned. Nathan Alderman owns shares of Apple. Tim Beyers owns shares of Apple and Google (A and C class). The Motley Fool recommends Apple and Google (A and C shares) and owns shares of Apple, Google (A and C class), and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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