Microsoft restructures workforce with focus on AI

Statement from CEO Satya Nadella follows reports from Bloomberg that nearly 4,000 software engineers have been laid off

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Microsoft CEO Satya Nadella recently announced that the company would be expanding its workforce, despite recent, significant layoffs. Nadella explained that this is a strategic and efficient approach in light of the ongoing revolution in artificial intelligence (AI).

The statement follows Bloomberg reports that Microsoft let go of almost 4,000 software engineers due to the increasing integration of AI within the company.

The recent layoffs are part of a larger initiative to cut nearly 6,000 jobs across various divisions, with more than 30 percent involving employees in the state of Washington.

Earlier this year, Nadella addressed Microsoft employees for the first time after the announcement of the 6,000 job cuts, which amounts to about 3% of the company’s global workforce. He reassured employees that the decision was part of a broader internal restructuring aimed at aligning teams with Microsoft’s changing priorities, particularly the growing focus on artificial intelligence. Nadella acknowledged the emotional impact of the layoffs but said these were driven by strategic considerations, not concerns about employee performance or productivity.

Business AM

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