Microsoft lays off Elop and others in Re-org move.
This really isn't big news in my opinion. But the funny thing was people pointing out that this did nothing to ease the pain of the former Nokia employees that Microsoft cut after the acquisition.
Frankly, I'm confused why any of this matters.
Nokia was a sinking ship. Those jobs, along with many others were gone whether Microsoft laid them off or not. Seriously!
Lets think about it. Nokia was fluctuating from being in the red and in the black. And when it WAS in the black, it was just barely. Since the acquisition, Windows Phone sales are on the decline again. Nokia would have been in the red more and more and if not purchased by someone would ultimately need to shut its doors. The layoffs probably would have been protracted over a much longer time period as devices was one of Nokia's key businesses. But, if they didn't sell, more than likely they would have had to shut down the business unit entirely at some point, which would have resulted in a much greater job loss.
The other option is that Nokia is sold to someone else. Well, the two most viable options are another handset maker or another platform owner. Unfortunately, Microsoft is the best of a bad lot for those laid off.
Another handset maker is most likely, and they would have simply cannibalized the patents and gotten rid of even more jobs than MS laid off. Nokia was not running very lean and another OEM wouldn't need all of Nokia's facilities or employees. In fact, they may not need them at all. A few key players might stay on along with some supporting staff, but you could basically guarantee everyone else is gone.
In the realm of platform owners... well there really weren't any viable ones. Google had already been burned by buying Motorola. And Google basically just cannibalized whatever value they could get and then kicked the company to the street. And Google even had a potentially viable use for a device OEM. Apple would have been even worse than Google. They have no need for an OEM at all, their Chinese labourers are far cheaper to employ. BlackBerry can't keep itself afloat so they certainly can't afford to buy Nokia. Which leaves... Microsoft.
The secret 3rd option is just sell the patents and can the division. Nokia might again move key figures to new roles and the company itself would likely have gotten a decent short term windfall, but once again, most everyone would be gone.
I'm not un-sympathetic to those that lost their jobs. Far from it. But blaming Microsoft for the layoffs is silly. Blame Nokia for hiring too many people or not getting rid of them sooner. The simple reality is that Nokia no longer needed a staff of the size that they originally had because demand for their product had shrank. For that, the only people to blame are either the consumers who chose to buy something else or the designers who made devices that an ever growing number of people didn't want. Pretending those jobs were safe if not for Microsoft is idiotic and short-sighted. It sure sped up the process. But nothing more.
Frankly, I'm confused why any of this matters.
Nokia was a sinking ship. Those jobs, along with many others were gone whether Microsoft laid them off or not. Seriously!
Lets think about it. Nokia was fluctuating from being in the red and in the black. And when it WAS in the black, it was just barely. Since the acquisition, Windows Phone sales are on the decline again. Nokia would have been in the red more and more and if not purchased by someone would ultimately need to shut its doors. The layoffs probably would have been protracted over a much longer time period as devices was one of Nokia's key businesses. But, if they didn't sell, more than likely they would have had to shut down the business unit entirely at some point, which would have resulted in a much greater job loss.
The other option is that Nokia is sold to someone else. Well, the two most viable options are another handset maker or another platform owner. Unfortunately, Microsoft is the best of a bad lot for those laid off.
Another handset maker is most likely, and they would have simply cannibalized the patents and gotten rid of even more jobs than MS laid off. Nokia was not running very lean and another OEM wouldn't need all of Nokia's facilities or employees. In fact, they may not need them at all. A few key players might stay on along with some supporting staff, but you could basically guarantee everyone else is gone.
In the realm of platform owners... well there really weren't any viable ones. Google had already been burned by buying Motorola. And Google basically just cannibalized whatever value they could get and then kicked the company to the street. And Google even had a potentially viable use for a device OEM. Apple would have been even worse than Google. They have no need for an OEM at all, their Chinese labourers are far cheaper to employ. BlackBerry can't keep itself afloat so they certainly can't afford to buy Nokia. Which leaves... Microsoft.
The secret 3rd option is just sell the patents and can the division. Nokia might again move key figures to new roles and the company itself would likely have gotten a decent short term windfall, but once again, most everyone would be gone.
I'm not un-sympathetic to those that lost their jobs. Far from it. But blaming Microsoft for the layoffs is silly. Blame Nokia for hiring too many people or not getting rid of them sooner. The simple reality is that Nokia no longer needed a staff of the size that they originally had because demand for their product had shrank. For that, the only people to blame are either the consumers who chose to buy something else or the designers who made devices that an ever growing number of people didn't want. Pretending those jobs were safe if not for Microsoft is idiotic and short-sighted. It sure sped up the process. But nothing more.
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