„Microsoft is booming.” CEO defends layoffs and explains why the company is betting on AI
Microsoft is currently „booming.” At least, according to CEO Satya Nadella, despite massive layoffs, he points to artificial intelligence as the key to further growth.
Recently, Microsoft carried out a massive workforce reduction, laying off over 9,100 employees. The CEO of the Redmond giant, Satya Nadella, sees no issue with the layoffs and defends the "restructuring," emphasizing that the company is currently "flourishing" in every possible respect (via 80 Level).
Microsoft CEO defends layoffs
Microsoft employees received a statement from Nadella himself. First and foremost, he praised artificial intelligence in it. He also tried to explain why the company laid off such a large number of employees despite increasing revenues.
By every objective measure, Microsoft is thriving – our market performance, strategic positioning, and growth all point up and to the right. Our overall headcount is relatively unchanged, and some of the talent and expertise in our industry and at Microsoft is being recognized and rewarded at levels never seen before. And yet, at the same time, we've undergone layoffs.
Nadella described this situation as an "enigma of success," but he stated that it represents an opportunity for the company to "shape, lead through, and have greater impact than ever before." Then - after yet again saying that the massive layoffs were a "difficult decision" - the CEO of Microsoft moved on to the topic of artificial intelligence.
The company is betting on AI
In his statement, Nadella highly praised the technology, noting that it will bring great benefits not only to ordinary users, but also to organizations. Nadella defined "AI transformation" as one of Microsoft's most important priorities and emphasized that the company will be "pushing new boundaries" in this field.
We will reimagine every layer of the tech stack for AI – infrastructure, to the app platform, to apps and agents. The key is to get the platform primitives right for these new workloads and for the next order of magnitude of scale. Our differentiation will come from how we bring these layers together to deliver end-to-end experiences and products, with the core ethos of a platform company that fosters ecosystem opportunity broadly. Getting both the product and platform right for the AI wave is our North Star!
In the end, Nadella compared the craze for artificial intelligence to the early 90s, when computers began to be widely used in "every home." He admitted that such a transformation may seem chaotic, but this type of changes "always are".
Teams are reorganizing. Scopes are expanding. New opportunities are everywhere.
All of this sounds like typical corpo-talk, but it clearly shows that Microsoft is heavily investing in the development of artificial intelligence. Of course, this is nothing new - we've recently learned that all employees at King will be replaced by AI. Satella's words are just another confirmation of the direction taken by the Redmond corporation.
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Author: Martin Bukowski
Graduate of Electronics and Telecommunications at the Gdańsk University of Technology, who decided to dedicate his life to video games. In his childhood, he would get lost in the Gothic's Valley of Mines and "grind for gold" in League of Legends. Twenty years later, games still entertain him just as much. Today, he considers the Persona series and soulslike titles from From Software as his favorite games. He avoids consoles, and a special place in his heart is reserved for PC. In his spare time, he works as a translator, is creating his first game, or spends time watching movies and series (mainly animated ones).
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