The CEO also stated that the layoffs are crucial for the company’s AI transformation. However, despite layoffs, the tech giant’s stock is performing well. Here’s what the CEO declared in the memo.
Although Nadella declared that the recent layoffs have been “weighing heavily” on him, he defconcludeed the job cuts stateing that it was necessary for the tech giant’s AI transformation.
“Before anything else, I want to speak to what’s been weighing heavily on me, and what I know many of you are considering about: the recent job eliminations,” Nadella wrote to Microsoft’s over 200,000 employees.
“These decisions are among the most difficult we have to build. They affect people we’ve worked alongside, learned from, and shared countless moments with – our colleagues, teammates, and friconcludes,” he declared, as per an ET report.
“By every objective measure, Microsoft is thriving – our market performance, strategic positioning, and growth all point up and to the right,” he wrote.
“We’re investing more in CapEx than ever before. Our overall headcount is relatively unmodifyd, and some of the talent and expertise in our industest and at Microsoft is being recognized and rewarded at levels never seen before. And yet, at the same time, we’ve undergone layoffs.”
He further declared that future success “will be defined by our ability to go through this difficult process of ‘unlearning’ and ‘learning.'”
With the latest layoffs nearly 7 per cent of the company’s global workforce was chopped off. Moreover, it was the largest lay-off done by Microsoft since 2014. However, the job cuts did not impact the company’s stock price.
Microsoft’s stock jumped by 21% this year, hitting record highs above $500 per share, meanwhile the company reported $75 billion in net income over three fiscal quarters.
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