Microsoft CEO gushes about AI as he prepares to ax 10,000 jobs

This post was originally published on Light Reading

Artificial intelligence (AI) appears a lot more valuable to Microsoft than the real thing. Just a few lines after enthusing about “advances in AI,” CEO Satya Nadella got around to the main purpose of his memo – informing staff that 10,000 of them at Microsoft would be jobless by the end of March. This is all while Microsoft reportedly plans a $10 billion investment in ChatGPT, the poster boy of “generative” AI. One way or another, the robots may be stealing the jobs.

Tactful, Nadella’s memo is not, but most of its details are unsurprising after all the speculation about layoffs at the Seattle-based software giant. The cuts will result in a one-off charge of $1.2 billion at Microsoft due to severance costs, the removal of desk space and what Nadella calls “changes to our hardware portfolio,” which has prompted further speculation about where the ax will fall.

Cuts would represent about 4.5% of Microsoft’s headcount at the end of June, when it employed 221,000 people worldwide, according to its last annual results filing with the Securities and Exchange Commission. That looks hefty considering Microsoft grew sales and reported nearly $18 billion in net profit for the July-to-September

Read the rest of this post, which was originally published on Light Reading.

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