Microsoft's recent moves show Satya Nadella's strategy to cut losses - Business Insider

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Microsoft cut its losses in significant ways this quarter as it shutters retail stores and Mixer — and analysts say they're key examples of CEO Satya Nadella's strategy that transformed Microsoft from an also-ran to a cloud leader

"Unfortunately, the spaces were too often underutilized; while crowds thronged Apple Stores in the same mall or on the same street, the foot traffic, revenue per square foot, and usage of services didn't match up to Apple Store," RBC Capital Markets in a research note last week said the firm believes the pandemic accelerated a strategy Microsoft was already planning to shrink its retail footprint and transition aggressively to a partner model with large displays at retailers like...

— from technical fumbles, to business miscalculations, and allegations of a "toxic" working environment. To O'Donnell, the Forrester analyst, shutting retail stores and Mixer are examples of Nadella's philosophy to cut the company's losses when its investments aren't working out. Nadella made his first big proclamation of this philosophy early on in his tenure when he made the decision to"It will continually assess each of its businesses and make the right decision to do it themselves or to partner where that makes more sense," O'Donnell said.

 

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