They should layoff even more if they want to be more responsive. You don't hire people just because you have profits. This is not charity work. The problem is more departments filled with more people that do not have a value add but basically have a value loss. They add time and paperwork and meetings but in the end do not make better software deliverables. Its time to burn some of the forest down and let new growth begin.
This is not unique to Microsoft but many corporations. GM should have been allowed to burn down to the ground. Our stupid government saved them and basically prolonged the pain. Look howTesla is kicking butt in an area where the big companies should be innovative. The problem is they are stuck in a pool of old processes and ways of thinking that only make them useless. I mean they still use keys to start a car and this has caused them major lawsuits.
I personally would have liked to see Microsoft broken up because that would be the best way to reinvent the company.
They are dropping the group making the Android Nokia phone. I bet they had some spy walking around the campus taking notes on who was using a Android or iPhone or iPad and they were put on the layoff list. They want loyalty at Microsoft.