"Microsoft needs to detail what their strategy is," said Ross Gerber, CEO of Gerber Kawasaki, which has a stake in the tech firm. "Morale is down. They are firing a ton of people. The way he did it is very harsh. Nadella has to tell us where is Microsoft going, what's the future growth for this company."
The move is designed to help Microsoft shift from being a primarily software-focused company to one that sells online services, apps and devices that it hopes will make people and businesses more productive.
"This new sheriff in town is bringing something I like," said Kevin O'Leary, one of the stars of the reality show "Shark Tank."
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"He's focused on the bottom line, focused on cash flow," O'Leary said of Nadella. "He's basically telling us that he doesn't care anymore—he wants to change the direction whether you like it or not."
The company also plans to close its Xbox Entertainment Studios, making it the first major technology firm to give up on the battle to create original programming, Re/code reported last week.
"It's really the beginning of 2015 their fiscal year that's going to get us most interested," said Max Wolff, economist at Milano Graduate School.
—By CNBC.com. Reuters contributed to this copy.
Disclosure: Shark Tank is a prime time reality show that airs on CNBC.