Microsoft CEO Satya Nadella admitted in a memorandum that recently the retrenchment of more than 9,000 employees is ‘huge impact’ on them. However, he defended the move, saying that this tech was necessary for the AI change of the legend. In a letter to more than 2,00,000 Microsoft employees, Nadella said about the trimming in the company, “Before anything, I want to say something that is overshadowing me, and I know that many of you must be thinking about the recent retrenchment.” He said, “These decisions are among our most difficult decisions ever. They impress with people with whom we have learned and with whom we have spent countless moments – our colleagues, team companions and friends.”
Sorting of over 15,000 employees
Let us tell you that by 2025 this year, Microsoft has trimmed over 15,000 employees. In addition, around 2,000 employees, who were considered weak performance, were also asked to leave the company. This was the largest pruning for Microsoft since 2014. Despite the trimming, Microsoft shares rose by 21% to a record level above $ 500 per share, while the company has recorded a total revenue of $ 75 billion in three financial quarters.
Satya Nadella explained “puzzle of success”
Nadella tried to convince the argument behind the trimming despite the company’s success. He wrote, “On every objective scale, Microsoft is flourishing. Our market performance, strategic status and development, are all pointing up and right. We are investing in more capital expenditure than ever before. Our total number of employees is relatively unchanged, and some talents and expertise in our industry and Microsoft are also being recognized and rewarded at the first ever seen levels. He has also faced retrenchment. ” He described this situation as a “puzzle of success in an industry” which has no franchise value and said “it is dynamic, sometimes inconsistent, and is always in demand.”
The CEO said in its memorandum that Microsoft is moving from the “software factory to intelligence engine” and has invested $ 80 billion in AI Infrastructure. Nadella imagines a future where “all 8 billion people can call an analyst or a coding agent on their fingers.”
Second most valuable company
Nadella wrote, “Starting the new financial year, I consider the journey and the way we have decided together.” The CEO expressed his heartfelt gratitude to those leaving the company, saying, “Their contribution has shaped us as a company and helped build the foundation on which we are standing today.” He did not give any guarantee against the sorting in the future, but urged the remaining employees to maintain the “mentality of development” during the “chaos” of transfer. Microsoft is currently the second most valuable public listed company in the world after NVidia.