Microsoft CEO Satya Nadella recently addressed the company's decision to lay off 6,000 employees, which accounts for about 3% of its global workforce. According to Nadella, the layoffs are part of a strategic realignment focused on advancing artificial intelligence (AI) capabilities, rather than a reflection of employee performance.

*Key Points:*

- *Reason for Layoffs*: Nadella emphasized that the decision was not based on individual job performance but rather a structural change to prioritize AI development.

- *AI Investment*: Microsoft plans to invest approximately $80 billion in building out its AI infrastructure this fiscal year.

- *Impact on Employees*: The layoffs affected various divisions, with product development and engineering teams being particularly hard hit.

- *Additional Layoffs*: Microsoft has also carried out another round of layoffs in early June, affecting over 300 staff members, further underscoring the company's focus on restructuring and efficiency.

Nadella's statements suggest that Microsoft is undergoing significant transformation to position itself for future growth and success in the tech industry, driven by its emphasis on AI ¹ ².