- The Microsoft CEO says that AI -induced employment cuts have been “weighing a lot” about it
- Satya Nadella compares this period in the early 1990s, when the PCs democratized
- Microsoft will announce quarterly income next week, so more cuts can arrive
In a memorandum of the entire company for workers, the Microsoft CEO, Satya Nadella, said that the recent work of the company “eliminations” has “heavy a lot.”
Nadella explained that “he acknowledges[s] The uncertainty and the apparent incongruity of the times in which we are in “, although Microsoft is” thriving “and the staff remains largely unchanged, many thousands have still lost their work, largely due to the efficiency updates induced by AI.
To justify changes in the workforce, Nadella explained that the roles are redefining due to the evolution of customer needs and how users do the job.
Satya Nadella understands that workers are concerned about their jobs
The news occurs when the company’s capital expenditure continues to increase (Microsoft plans to spend about $ 80 billion in AI infrastructure only in 2025, and yet the dismissals can only save a small portion of this expense.
However, recent cuts have triggered the general discontent of employees, fear and death of morals, and many fear that the company can return to ‘Old Microsoft’ where internal rivalries, poor communication and labor insecurity make it an unpleasant company to work.
Around 9,000 Microsoft workers lost their jobs in July 2025, with around 6,000 also in May and several hundred in other smaller adjustments.
When comparing the current situation with the early 1990s, when PCs and productivity software democratized, Nadella said: “You can feel disorderly sometimes, but the transformation is always. The equipment is being reorganized. The areas are expanding. The new opportunities are everywhere.”
The CEO also expressed that progress is not always linear, and in this case, it could be dynamic, dissonant and demanding.
Nadella also promised to address employees’ concerns at the next meeting of the company of the company, as well as share more details in the earning call, scheduled for July 30.
