Microsoft staff cuts extend to Silicon Valley research lab

As Satya Nadella's axe continues to fall at Microsoft,
the corporation's Silicon Valley research lab has been the next to succumb to the severe round of staff reductions ongoing this year.

In a move that appears to reflect a new level of urgency to Nadella's consolidation plans, the Redmond giant has closed one of its flagship engineering facilities and released dozens of world-class scientists into the job market - and the welcoming arms of its competitors. The Mountain View site reportedly employed a team of 75 that focused exploring new applications for distributed computing - the fundamental concept behind the cloud - in areas such as natural language search, data privacy and network security.

But although the lab itself is no longer operational, Microsoft is still clinging to its Silicon Valley research investment. Projects that were ongoing at the time of the termination have been transferred to other research facilitates along with key members of the original team, which indicates that business will continue more or less as usual at those sites for the foreseeable future.

While the cuts were met with stockholder approval, there's speculation Nadella's staff reductions are a strategy of short term gains that will jeopardize the corporation's long term prospects.