On Thursday's Market Foolery, host Chris Hill, alongside Simon Erickson, a Motley Fool Rule Breakers analyst, and David Hanson, a Fool.com financial analyst, jump into the latest move by Microsoft's (MSFT 0.45%) CEO.
Rumors about Microsoft layoffs swirled last week and, this morning, Chris explains, CEO Satya Nadella sent an email to all of Microsoft's employees with the subject: "Starting to evolve our organization and culture." The evolution turns out to be a layoff of about 18,000 people, most in the next six months, with around 12,500 of those jobs at Nokia. Yet, he notes that the move is being seen as a good move by most.
Simon explores the layoffs by first looking at Nadella's streamlining of the company, and then focusing on what Nadella will work to develop. A layoff this large surprises Chris, and David agrees with the feeling. Yet, David sees the move as the right one. He sees this as the new way of running Microsoft under Nadella.
With the stock up about 18% year to date, Chris wants to know what the analysts think of the stock. On one hand, Simon thinks the stock looks a little pricey; on the other hand, David sees the stock a bit more steady. David looks at the company during the past year, and he thinks that it's worth a look for investors.
