Microsoft CEO Explains Recent Layoffs in Internal | Global Market News
Despite Microsoft’s place because the No. 2 most dear company in the world, behind Nvidia, with a market worth of $3.8 trillion, the tech giant has laid off more than 15,000 people this 12 months.In a memo to employees on Thursday morning, launched publicly on Microsoft’s company weblog, Microsoft CEO Satya Nadella addressed the latest job cuts, calling the choices some of “the most difficult” that he needed to make.”Before anything else, I want to speak to what’s been weighing heavily on me, and what I know many of you are thinking about: the recent job eliminations,” Nadella wrote.
Related: Microsoft Is Laying Off More Workers as AI Continues to Trim WorkforcesNadella acknowledged “the uncertainty and seeming incongruence of the times we’re in” however famous that Microsoft is “thriving,” with distinctive market efficiency, strategy, and growth. For instance, Microsoft’s stock price rose to an all-time high, hitting a closing price above $500 for the primary time earlier this month.
Nadella additionally said that the company is investing more in AI infrastructure than ever earlier than, pouring over $80 billion into AI in the fiscal 12 months that ended in June.”Microsoft is being recognized and rewarded at levels never seen before,” Nadella wrote. “And yet, at the same time, we’ve undergone layoffs. This is the enigma of success in an industry that has no franchise value.”Nadella defined the disconnect between thriving financials and layoffs by stating that “progress isn’t linear” and that it’s “sometimes dissonant, and always demanding.” He famous that headcount at Microsoft “is relatively unchanged” because the company continues to rent new staff, and he would not promise that there will not be more layoffs in the longer term. Microsoft reported using 228,000 staff as of June 2024.Microsoft CEO Satya Nadella. Photographer: Chona Kasinger/Bloomberg through Getty Images
In the memo, Nadella additionally redefined Microsoft’s mission from a “software factory” to an “intelligence engine.” He mentioned that the company’s future alternative was to convey AI to all eight billion people on the planet.Related: Microsoft Executive Says Using AI Has Saved $500 Million in Productivity Costs, because the Company Conducts Mass Layoffs Meanwhile, Microsoft has made big income not too long ago, with its web income equaling about $75 billion throughout its final three fiscal quarters. For the primary three months of 2025, the company’s revenue rose to $25.8 billion, up 18% from the earlier 12 months, beating Wall Street expectations.Microsoft stock is up 22% year-to-date.
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Despite Microsoft’s place because the No. 2 most dear company in the world, behind Nvidia, with a market worth of $3.8 trillion, the tech giant has laid off more than 15,000 people this 12 months.In a memo to employees on Thursday morning, launched publicly on Microsoft’s company weblog, Microsoft CEO Satya Nadella addressed the latest job cuts, calling the choices some of “the most difficult” that he needed to make.”Before anything else, I want to speak to what’s been weighing heavily on me, and what I know many of you are thinking about: the recent job eliminations,” Nadella wrote.
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