This month commenced with unsettling news for Microsoft employees: despite the company performing better than ever, around 9,000 positions were eliminated globally, studios were shuttered, and projects were scrapped. To exacerbate the situation, one executive suggested that those affected should rely on AI for comfort.

Nadella’s Outlook

In a recent blog entry titled “Recommitting to our why, what and how” Nadella tackled the challenging topic of job eliminations. He openly reflected on the apparent contradiction that while Microsoft exhibits strong growth and market performance, it still engaged in layoffs.

Nadella characterized this paradox as “the enigma of success in an industry without franchise value.” He emphasized that progress is not linear and often involves dynamic, demanding changes. Nadella also stressed the company’s mission in the era of AI: empowering everyone to create their own tools to adapt to these changes effectively.

Despite his management perspectives, many employees and observers find the rationale difficult to digest as it seems disconnected from the daily realities faced by the redundancies.