“As we begin a new fiscal year, I’ve been reflecting on the road we’ve traveled together and the path ahead. Before anything else, I want to speak about what’s been weighing heavily on me and what I know many of you are thinking about: the recent job eliminations. These decisions are among the most difficult we have to make. They affect people we’ve worked alongside, learned from, and shared countless moments with—our colleagues, teammates, and friends.
“I want to express my sincere gratitude to those who have left. Their contributions have shaped who we are as a company, helping build the foundation we stand on today. And for that, I am deeply grateful. I also want to acknowledge the uncertainty and seeming incongruence of the times we’re in.
“By every objective measure, Microsoft is thriving our market performance, strategic positioning, and growth all point up and to the right. We’re investing more in CapEx than ever before. Our overall headcount is relatively unchanged, and some of the talent and expertise in our industry and at Microsoft are being recognized and rewarded at levels never seen before. And yet, at the same time, we’ve undergone layoffs.”- Microsoft CEO Satya Nadella.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
Yes, the conclusion was “And yet, at the same time, we’ve undergone layoffs”. And there is nothing bad about it. Because layoffs will come and will continue to happen. Why? Labour is a FACTOR of production, and as a production factor, it must do its work and when not needed, must make way.
It is an illusion to think that your company is your family. Anyone who tells you that has not explained to you the core meaning of labour in classical economics. In classical economics, labour refers to the physical and mental effort exerted by humans to produce goods and services. Classical economists, like Adam Smith, viewed labour as a key determinant of a commodity’s value, believing that the amount of labour required to produce something directly influences its exchangeable value. The implication is that labour can be “commoditized”.
When something is commoditizable, it is not directly defensible. So, to make your labour defensible, you need Knowledge. Microsoft is weeding our labour even as it hires Knowledge AI talent because AI systems are accelerating the pace of the commoditization of labour.
Today, companies need Knowledge to grow capital in this knowledge AI era! Simply, the big boss is telling us: I am not promising anyone of iron clad job; layoffs will happen, but more people will come to Microsoft. It is left for you to adjust the class you belong in the factors of production.
Microsoft CEO Addresses Emotional Toll of Layoffs Amid Strategic Shift Toward AI
---
Connect via my
LinkedIn |
Facebook |
X |
TikTok |
Instagram |
YouTube