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Microsoft announces layoffs amid shift to AI investments

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by Giorgi Kostiuk

a day ago


This year, Microsoft has laid off nearly 15,000 employees as part of its significant transition to AI investments. CEO Satya Nadella addressed the recent events and their impact on the company.

Job Cuts at Microsoft

As of June 2024, Microsoft had a workforce of 228,000. In early July, the company announced plans to lay off about 9,000 workers. Although the exact figures for layoffs this year have not been disclosed, Nadella indicated that the overall workforce remains roughly unchanged. The job reductions reflect a broader trend in the tech sector, where 80,000 positions have already been eliminated.

Employee Reactions to Layoffs

Discontent has emerged among Microsoft employees regarding the layoffs. One director expressed concern, stating that the layoff decisions betrayed their loyalty. They noted that the company's values were not reflected in the decisions being made.

Nadella's Vision in the Age of AI

Satya Nadella urged employees to reconnect with Microsoft’s long-standing mission. According to him, the development of AI has transformed this mission, and the company’s goal is to create tools that help every individual and organization face challenges in the AI era. "What does it mean to empower people in the age of AI?" Nadella inquired, emphasizing the need for interaction and the development of self-made tools.

The significant layoffs at Microsoft highlight a shift in focus within the IT industry toward artificial intelligence. Despite the negative reactions from employees, Nadella continues to stress the importance of developing technologies that will foster growth and development.

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