Microsoft CEO Satya Nadella has finally publicly addressed the issue that has been the subject of discussion for the past few weeks. The company's decision to lay off 9,000 employees had caused a stir among employees and in the industry. Now, Nadella has spoken openly about this decision.
In an internal message, Nadella said that making such decisions is extremely difficult for him. He said that those who are leaving the company are not just employees, but also colleagues, teammates, and friends who have worked with him.
Nadella said that these decisions are also emotionally affecting him, but this change was necessary for the company in the current situation.
Unease Among Employees, No Explanation on Layoffs Earlier
In early June this year, Microsoft laid off approximately 9,000 employees. At that time, this layoff was done suddenly and quietly. There was no detailed statement from the company, nor was any prior notice given to the employees.
Now that Satya Nadella has started speaking on this, answers to many questions are also beginning to emerge. He acknowledged that the process has not been easy. He also did not clarify whether this was the final layoff or whether there may be further cuts.
However, Nadella did say that there has not been much change in the total number of employees and that the company's progress has not been affected by it.
AI and Cyber Security Highlighted as Priorities
Nadella also shed light on the company's current priorities in his message. He stated that at this time, Microsoft's entire focus is on three important areas – security, quality, and artificial intelligence (AI).
He made it clear that security has been made the company's number one priority after the recent cyber incidents and questions raised regarding data security. In addition, special attention is also being paid to product quality and reliability.
Nadella said that Microsoft's services are essential for millions of people and companies around the world. In such a situation, maintaining security and trust is their biggest responsibility.
Microsoft Moving Rapidly Towards AI
A major reason behind this layoff decision is also believed to be Microsoft's AI-focused strategy. The company has made large investments in the field of artificial intelligence in the recent past.
According to reports, Microsoft has invested more than $80 billion in AI infrastructure. At the same time, the company's share has gone above $500 for the first time, which is its historical level.
In the last three quarters, Microsoft's net income has reached close to $75 billion. This figure clearly shows that the company's financial position remains b, but internal changes are still being felt.
Jobs Lost Due to Poor Performance and Structural Changes
Talking about another important aspect related to the layoffs, according to reports, about 2,000 employees were laid off due to poor performance. The remaining 7,000 were affected by the restructuring in AI and other business segments.
The impact of these layoffs was particularly seen on product, research, and support teams. Some departments have been completely redesigned so that the company can become more agile, secure, and technically capable in the future.
All Eyes on the Upcoming Quarter's Results
Microsoft is now preparing to announce the results of the fourth quarter of its fiscal year 2025 on July 30. In such a situation, it will be interesting to see what impact these layoffs and strategic changes have had on the company's performance.
The company is hoping that AI-based investments and internal changes will pave the way for future growth. However, at present, the eyes of both employees and the market are on the company's next move.
