
Microsoft leader executive satya Nadella has spoken out for the first time following the organization's recent choice to cut about 6,000 jobs—about three percent of its global staff—emphasizing that the move changed into a part of a broader internal restructuring and no longer a mirrored image of employee performance.
Addressing the team of workers in the course of a companywide town hall meeting, Nadella stated the layoffs have been essential to realign teams in accordance with Microsoft's evolving priorities, in particular its growing consciousness on synthetic intelligence. He acknowledged the emotional toll of the decision but underscored that it changed into a push via strategic shifts, no longer shortcomings in productivity or expertise.
The activity cuts have disproportionately affected engineering roles—an amazing development given the traditional belief of those positions as secure. The pass highlights a shift inside the tech enterprise, where even product development groups are being reshaped amid the accelerating integration of AI technology.
During the same internal event, executives highlighted Microsoft's substantial momentum in promoting AI gear to company clients. Chief business Officer Judson Although found out that british banking giant Barclays has committed to purchasing 100,000 licenses for microsoft Copilot—the enterprise's flagship AI assistant. Although additionally referred to that numerous essential international firms, along with Accenture, Toyota, Volkswagen, and Siemens, now each have over one hundred,000 users of Copilot within their organizations.
Nadella stressed the significance of monitoring how deeply Copilot is embedded throughout customer operations, with microsoft paying near interest to the percentage of customers actively engaging with the tool. At a list charge of $30, according to users in line with the month, the size of those contracts suggests annual revenues inside the tens of tens of millions of bucks—even though actual figures are in all likelihood reduced by means of bulk pricing agreements.
The developments mirror Microsoft's pivot toward enterprise AI as a key growth region, while the corporation trims its personnel to hold efficiency and recognition.