Microsoft Layoffs: 6000 employees fired from Microsoft? CEO Satya Nadella told the reason
The layoffs were not due to employee performance. Microsoft has announced plans to spend about $80 billion on AI infrastructure in the current fiscal year. Microsoft has admitted that AI now writes up to 30 percent of the code in some internal projects
Microsoft recently laid off about 6,000 employees. This number is about 3 percent of the company’s entire worldwide workforce. Now, CEO Satya Nadella has revealed why such a step was taken. According to Nadella, the reason for the layoffs was not performance but reorganization.
Speaking during a company-wide town hall, Nadella clarified that the recent layoffs were the result of internal restructuring. Its purpose was to align Microsoft’s priorities, especially given the company’s push on artificial intelligence (AI). The reason for the layoffs was not the performance of the employees.
About $80 billion will be spent on AI infrastructure
Microsoft has announced plans to spend about $80 billion on AI infrastructure in the current fiscal year. The company is also accelerating the offering of its Copilot AI assistants across various customer segments. This change is restructuring or phasing out some roles, especially in product development and engineering. This is to make way for new roles that are better suited to Microsoft’s AI vision.
‘Traditional coders can become software operators’: Microsoft CPO
Microsoft Chief Product Officer Aparna Chennapragada has strongly opposed the growing perception that coding skills are becoming obsolete with the rise of AI. She said during a recent podcast, “Many people think, ‘Oh, don’t bother studying computer science or coding is over.’ I fundamentally disagree with that.”
Although Chennapragada acknowledged that AI is automating parts of software development – Microsoft has acknowledged that AI now writes up to 30 percent of the code in some internal projects – Chennapragada sees this as the next natural evolution of technology creation. He suggested that in the future, engineers may be seen as software operators rather than traditional coders.
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