After laying off 9000 employees, killing projects and closing studios, Microsoft CEO says the company “is thriving”, as success is “not about longevity” but “relevance”

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Lately, Microsoft Corporation, which owns Xbox, has been in the news due to its massive layoffs affecting over 9,100 employees last month. Consequently, projects like Everwild, Perfect Dark, and a new MMO from Zenimax Online Studios (the developer of Elder Scrolls Online) have been cancelled, and some entire studios have closed down. There’s no denying that Microsoft’s decisions have negatively impacted thousands of people.

After the round of layoffs, an Xbox producer advised us, the affected employees, to utilize AI tools like Microsoft Copilot to “lighten the emotional and mental strain caused by job loss.” Now, Microsoft’s CEO, Satya Nadella, has proudly declared that “Microsoft is flourishing” even amidst these recent reductions in workforce.

In a post on the Microsoft Blog and in communication with company staff, Nadella conveyed heartfelt appreciation towards those who are departing (numbering approximately 9,000), acknowledging their significant role in establishing the strong base that the company stands upon today.

As a gamer speaking, I’d say: “By any standard, things are going great for Microsoft, my go-to gaming platform. Our market dominance, smart moves, and expansion are all on an upward trajectory. We’re pouring more resources into Capital Expenditure than ever before. The team size isn’t much different, but the skill and expertise within our ranks is being celebrated like never before. And yet, despite this success, we’ve had to let some people go.

According to Nadella, Microsoft has come to understand that success isn’t solely about endurance; it’s about maintaining relevance after 50 years of dominating the personal computing market. He further stated, “Our future doesn’t hinge on our past achievements, but rather on what we enable others to create right now.

In a significant portion of his speech, the CEO of Microsoft emphasized the importance of Artificial Intelligence. This topic reminded him of the 1990s, an era when personal computers and productivity software were commonplace in nearly every household.

The CEO, worth $1.1 billion at this moment, ponders, “What does it mean for people to be empowered in an age dominated by Artificial Intelligence?” He explains, “Rather than crafting tools designed for specific jobs or duties, we aim to construct tools that enable everyone to develop their own tools. This transition is crucial – moving from a software production facility to an intelligence platform that empowers every individual and organization to build whatever they require to succeed.

During Microsoft’s recent round of layoffs, it wasn’t just the gaming sector we focus on that felt the impact. However, even these minor cuts across various areas have resulted in significant harm due to years of costly acquisitions.

Some impacted employees argue that the tech company is aiming to minimize human workforce by maximizing the use of AI solutions, having already poured billions into this technology. Other staff members express apprehension about potential upcoming job cuts.

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2025-07-25 13:10