Tech: “Microsoft Is Thriving,” Says CEO — While 9,000 Employees Exit in AI-Driven Layoffs

Amid a wave of job cuts that displaced over 9,000 employees, Microsoft CEO Satya Nadella has reaffirmed the company’s ambitious AI-first direction, claiming in a new statement that “Microsoft is thriving.”

The message, shared internally and publicly, attempts to reconcile the company’s record-setting market performance with the very real human cost of its recent layoffs.

“I want to express my sincere gratitude to those who have left,” Nadella said. “Their contributions have shaped who we are… And for that, I am deeply grateful.”

Despite the acknowledgment, Nadella remained firm in his outlook: Microsoft is doubling down on AI transformation, investing heavily in infrastructure, and entering what he described as a new frontier.

“By every objective measure, Microsoft is thriving—our market performance, strategic positioning, and growth all point up and to the right,” he said.
 “This is the enigma of success in an industry that has no franchise value. Progress isn’t linear. It’s dynamic, sometimes dissonant, and always demanding.”

💼 The Cost of Transformation

Microsoft’s reorganization has rippled across major divisions, including gaming. According to reports, several projects—such as Rare’s Everwild, The Initiative’s Perfect Dark reboot, and a new ZeniMax MMORPG—have been scrapped entirely.

Developers from King’s Candy Crush team and Turn 10 Studios (behind Forza Motorsport) were reportedly replaced by AI tools—some of which those same employees helped build. While Microsoft claims the layoffs were necessary “to position the company and teams for success,” critics argue that the shift prioritizes scalability over humanity.

“Creative industries such as video games are human ones,” wrote Eurogamer’s Chris Tapsell, “existing because of deeply human urges… Drives which run in direct opposition to the horrifying inhumanity of the people who run them.”

🧠 Microsoft’s AI Vision

Nadella outlined a company strategy built on three pillars: security, quality, and AI transformation. But more than just integrating AI into workflows, he envisions Microsoft becoming a platform where people build their own intelligence tools.

“We’re shifting from a software factory to an intelligence engine,” he explained. “It’s not about building tools for roles — it’s about building tools that build tools.”

He likened the current moment to the early ’90s PC revolution, saying the company is “in the messy middle” of another seismic transformation.

🗣️ MainEvent.News | Backstage Take:

Microsoft’s message is loud and clear: AI isn’t coming — it’s already here. But Nadella’s carefully worded optimism glosses over a bitter reality. While shareholders enjoy surging stock and headlines shout "AI revolution," thousands of employees are left behind, many replaced by the very tools they created. In the chase for scalability, creative industries risk losing the human spark that made them valuable in the first place. Whether Microsoft is leading a renaissance or ushering in a colder, machine-first era depends on who you ask—and whether you're still employed.