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IBL News | New York
Satya Nadella, Microsoft’s CEO, rationalized the 9,000-employee layoff through a 1,150-word memo that highlighted how the company is thriving in terms of market performance, strategic positioning, and growth, while the AI-based disruption is taking place in the software industry.
Progress isn’t linear. It’s dynamic, sometimes dissonant, and always demanding. But it’s also a new opportunity for us to shape, lead through, and have greater impact than ever before.
In a double corporate language, Nadella tries to reconcile two contradictory realities: How can a company be “more successful than ever” while still eliminating jobs?
“This narrative framework captures the harsh reality that AI, in theory, will make companies more profitable while employing fewer people,” wrote San Francisco-based writer, photographer, and investor Om.
Microsoft’s CEO [in the picture above] implies that the laid-off employees are not due to financial struggles, but rather because those workers didn’t align with the company’s AI-focused strategy, suggesting that some employees’ skills have become outdated.
Rather than invest in retraining, the company opted to hire fewer workers with more relevant expertise.
“The Microsoft memo portends the new reality of the technology industry. For years, the sector has been generous to its employees, offering unheard-of perks and placing a premium on skills such as software development. AI, however, inverts that relationship,” said Om.
