Latest news with #Nadella
Forbes
6 hours ago
- Business
- Forbes
Microsoft's AI Vision Is Brilliant, But Who Will It Prioritize?
Microsoft Chairman and CEO Satya Nadella speaks and the world listens On July 24, Microsoft CEO Satya Nadella issued a note to Microsoft staff in which he explained his vision of "the why", "the what" and "the how" of Microsoft at the start of new year and at a time of major AI change. It is well worth reading. It may affect us all. Reshaping The AI Narrative His articulation of "the why", is the most important part. The Focus Is On Both Individuals And Enterprises The vision restates Nadella's 2014 vision, emphasizing value for both individuals and enterprises. Microsoft's Track Record In Communications The vision statement has raised a furor over how inevitable staff terminations are being handled. But the more important question is how Microsoft will go about implementing its vision of empowering AI for individuals. The question is underlined by the fact that Microsoft appears to have done the exact opposite in the communications field. Here, its tool, the controls-rich product Teams (with 36% market share), has become a perfect fit for its hierarchical bureaucratic enterprise customers. Essentially, Microsoft has ceded the field of individual-friendly communications tools to Zoom (with 55% market share). The recent cancellation of Microsoft's Skype tool shows that the decision is final. In essence, in the communications field, Microsoft prioritizes enterprise money and controls over individual user needs. Will it be the same in AI? The Credibility Of Microsoft's AI Vision Against this track record, it is fair to ask how far the implementation of Nadella's brilliant AI vision will empower individual users, not just enterprises. Microsoft's extraordinary financial success under Nadella's tenure (with a market capitalization of $3.8 trillion) has been largely driven by enterprise solutions, particularly Azure and cloud services, which cater to business needs. In his role as a leader, Nadella's emphasis on empathy has also been a remarkable cornerstone. In some of its tools, (such as gaming, Word and PowerPoint) Microsoft has been able to achieve some balance in addressing both individual and enterprise needs. It has also made strides in consumer AI tools (e.g., Windows AI Foundry) and in skilling initiatives. These are however less developed than its enterprise offerings, suggesting individual empowerment may have become a secondary focus in Microsoft's implementation of its vision. Now Nadella's AI vision reflects an aspirational goal to democratize AI. Against the background of its recent strategic choices in communications—favoring enterprise controls over user-friendly accessibility—there is an obvious question of the credibility of its approach. Over time, as consumer AI tools mature, Microsoft may close this gap, but in recent moves, its enterprise focus has been striking. A key element in understanding the AI situation is the remarkable dynamism of AI, which makes it almost impossible to say exactly what will happen or when or what the choices will be. Everything is happening at Mach speed with many potential risks and opportunities. This underlines the importance of the mindset with which Microsoft will approach the implementation of its AI vision. Microsoft's recent actions, particularly in the communications field, raise questions about whose AI needs will be prioritized. Enterprises? Or individuals? Or a balance of the two? And read also: Why Millions Of Managers Are Becoming Obsolete—It's Not Rocket Science—Or AI How An Obsession With Customers Made Microsoft A Two-Trillion Dollar Company
Time of India
18 hours ago
- Business
- Time of India
Microsoft CEO Satya Nadella to 15,000+ employees fired this year: "For that, I am ..."
Microsoft CEO Satya Nadella Microsoft CEO Satya Nadella delivered a sobering message to employees Wednesday as the company announced its fourth round of layoffs this year, eliminating 9,000 more positions and bringing total workforce reductions to over 15,000 this year. "Before anything else, I want to speak to 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," Nadella wrote in an internal memo addressing the latest cuts affecting 4% of Microsoft's 228,000 global workforce. The CEO continued: "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." Microsoft cuts 15,000+ jobs across multiple divisions despite record profits The year-long elimination spree began with performance-based cuts in earlier in the year, escalated with 6,000 layoffs in May targeting software engineers and project managers, continued with 300+ June reductions, and culminated in Wednesday's 9,000-person reduction. The gaming division suffered the heaviest losses, with over 3,000 positions eliminated since Microsoft's $69 billion Activision Blizzard acquisition closed in 2023. High-profile casualties include The Initiative studio's complete closure, cancellation of anticipated titles Perfect Dark and Everwild, and 200 job cuts at King, maker of Candy Crush. Xbox CEO Phil Spencer told gaming employees the cuts would "position Gaming for enduring success" while acknowledging the timing during Microsoft's strongest gaming performance period. Despite the workforce reductions, Microsoft reported $25.8 billion in quarterly net income with 18% year-over-year growth, maintaining its position among the S&P 500's most profitable companies. AI revolution drives management restructuring as technology writes 30% of code Nadella addressed the apparent contradiction between strong financial performance and mass layoffs, describing it as "the enigma of success in an industry that has no franchise value." The CEO emphasised Microsoft's transformation from a "software factory to an intelligence engine" while the company invests $80 billion in AI infrastructure this fiscal year. The strategic shift reflects AI's growing role in Microsoft's operations, with artificial intelligence now writing up to 30% of code in some company projects. Microsoft has systematically targeted middle management layers to eliminate organizational barriers and increase decision-making speed, mirroring similar restructuring efforts by Amazon and Meta. Affected employees receive comprehensive severage packages including healthcare coverage and job placement assistance, with priority consideration for other Microsoft positions. The restructuring aligns with Microsoft's new fiscal year launch, when the company traditionally announces major organisational changes.
Miami Herald
2 days ago
- Business
- Miami Herald
Microsoft CEO makes bold statement on company's future
In a candid memo released July 24, Microsoft CEO Satya Nadella addressed what he called the issue "weighing heavily" on him: the company's ongoing layoffs. More than 15,000 Microsoft employees have been let go in 2025 alone, as part of what Nadella described as a necessary but painful restructuring in the age of AI. Don't miss the move: Subscribe to TheStreet's free daily newsletter The company also cut nearly 2,000 additional staff deemed "low performers" earlier this year. "I want to speak to what's been weighing heavily on me, and what I know many of you are thinking about: the recent job eliminations," he wrote. Related: OpenAI CEO Sam Altman says that ChatGPT is not the way to superintelligence Recall Nadella wrote a similar note in 2023 - shortly after the company paused raises and announced its first significant layoffs of the post-pandemic era. He faced criticism at the time for placing too much focus on the company's outperformance without acknowledging those difficult moves. Despite the cuts, investors have rewarded Microsoft's leaner operating model. The company's stock closed above $500 for the first time on July 9, a symbolic milestone that arguably underscores Wall Street's growing faith in Microsoft's AI strategy. In his July memo, Nadella used stark language to describe the current environment, stating: "This is the enigma of success in an industry that has no franchise value." "Progress isn't linear," he added. "It's dynamic, sometimes dissonant, and always demanding. But it's also a new opportunity for us to shape, lead through, and have greater impact than ever before." For the past decade, Microsoft (MSFT) has operated under a unifying purpose: to empower every person and every organization on the planet to achieve more. But Nadella says that vision now needs to evolve. Related: Analysts unveil bold Amazon stock price target before earnings "We must reimagine our mission for a new era," he wrote. "What does empowerment look like in the era of AI? It's not just about building tools for specific roles or tasks. It's about building tools that empower everyone to create their own tools." This shift reflects the company's broader transformation from a software-centric business to what Nadella calls an "intelligence engine empowering every person and organization to build whatever they need to achieve." Microsoft's strategy hinges on positioning itself at the center of the AI value chain. Its Azure cloud platform is rapidly becoming the infrastructure of choice for AI workloads. OpenAI, as well as other major AI labs and enterprises, use Microsoft's GPU-centric cloud services to train and deploy large models. Copilot, Microsoft's generative AI assistant, has also been integrated into Office, GitHub, and enterprise software suites. More Tech Stocks: Amazon tries to make AI great again (or maybe for the first time)Veteran portfolio manager raises eyebrows with latest Meta Platforms moveGoogle plans major AI shift after Meta's surprising $14 billion move By reframing Microsoft as a platform that enables AI-native innovation, Nadella aims to extend the company's dominance beyond cloud and productivity into the AI-native economy. Nadella's statement marks a strategic realignment that mirrors an entire industry in transition. As Microsoft retools its mission, the world is watching to see if it can balance innovation, values, and leadership in one of the most disruptive technological shifts in history. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
NDTV
4 days ago
- Business
- NDTV
'Enigma Of Success': Microsoft CEO Satya Nadella After 15,000 Job Cuts
Microsoft CEO Satya Nadella on Friday said the massive layoffs in 2025 weighed heavily on him, even as the company continued to thrive. In a memo to employees, Mr Nadella said: "Before anything else, I want to speak to 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." He acknowledged that while 15,000 roles, including 9,000 in early July, have been cut this year, the company's overall headcount remains largely unchanged. Despite the scale of the workforce reductions, Mr Nadella mentioned that the tech giant was going strong with its market performance, including strategic positioning and growth, all pointing up and to the right. He called it an "enigma of success," adding that tech companies must constantly evolve to stay ahead. The 57-year-old said the company was reimagining its mission to stay relevant in today's fast-changing era. "What does empowerment look like in the era of AI?" he asked. Mr Nadella stated that the company was now looking for building tools that give the ability to people to build their own tools using AI, instead of focusing on tools for specific roles or tasks. "That's the shift we are driving-from a software factory to an intelligence engine empowering every person and organization to build whatever they need to achieve," he added. The CEO also mentioned the company's goals, with three major priorities - security, quality, and AI transformation. "Security and quality are non-negotiable," he added. Earlier this week, US Vice President JD Vance slammed Microsoft for firing 9,000 Americans while still going for H1-B visas, reported Fox Business. "You see some big tech companies where they'll lay off 9,000 workers, and then they'll apply for a bunch of overseas visas." He lambasted the company's hiring practices, stating, "But I don't want companies to fire 9,000 American workers and then to go and say, 'We can't find workers here in America. That's a bulls**t story."
Yahoo
5 days ago
- Business
- Yahoo
Stocks to watch next week: Microsoft, Apple, Shell, AstraZeneca and HSBC
Four more of the "Magnificent 7" are to due to report in the coming week, along with a raft of major companies across a range of sectors. Following on from Tesla (TSLA) and Alphabet (GOOGL, GOOG) earnings this week, Microsoft (MSFT), Meta (META), Apple (AAPL) and Amazon (AMZN) are next up from the Mag 7 to report. On the London market, Shell (SHEL.L) is due to report, having already flagged weaker trading and production for its integrated gas division in the second quarter. Another FTSE 100-listed (^FTSE) giant reporting in the week ahead is pharmaceuticals company AstraZeneca (AZN.L), which has just pledged $50bn of investment in its US operations. Meanwhile, HSBC (HSBA.L) will be the latest UK-listed bank to report, following on from Lloyds (LLOY.L) and NatWest (NWG.L) this week. Here's more on what to look out for: Microsoft (MSFT) – Releases fourth quarter earnings on Wednesday 30 July Tech companies are continuing to cut jobs to reduce costs and streamline operations. This includes Microsoft (MSFT), which recently revealed that it was cutting another 9,000 jobs globally, not long after it axed around 6,000 roles in May. And in a memo to staff on Thursday, CEO Satya Nadella admitted that the recent layoffs had been "weighing heavily" on him. "These decisions are among the most difficult we have to make," he said. "They affect people we've worked alongside, learned from, and shared countless moments with — our colleagues, teammates, and friends." He acknowledged that by "every objective measure, Microsoft is thriving — our market performance, strategic positioning, and growth all point up and to the right." However, Nadella added: "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." Despite the recent layoff announcements, Microsoft (MSFT) shares have climbed since the company released third quarter results at the end of April and are currently up 21% year-to-date. The company beat expectations in the third quarter, reporting revenue of $70bn (£52.1bn) compared to forecasts of $68.4bn, according to Bloomberg consensus estimates. Earnings per share of $3.46 also beat estimates of $3.21. Read more: Tesla disappoints while Alphabet tops expectations to kick off Mag 7 earnings Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: "Microsoft is the king of quietly going about its business and nailing execution along the way." He said cloud performance through Microsoft Azure was stronger than expected last quarter "and there could be some upside to guidance of 34-35% growth in next week's fourth-quarter results if it's been able to bring more supply online." "Margins will be in focus as eye-watering AI investment continues, but as supply/demand dynamics become more favourable there should be a natural tailwind," he said. Britzman added that there would also be "keen interest in how efforts to boost efficiency are progressing". "Recent reports suggest Microsoft has already saved over $500m in annual costs by integrating AI into its customer service functions," he said. "Some analysts think there's much more to come and will be keeping an eye out for any further commentary on AI driven cost savings." Apple (AAPL) – Releases third quarter results on Thursday 31 July Shares in Apple (AAPL) are down nearly 15% year-to-date, as tariff headwinds have weighed on the iPhone-maker. Apple CEO Tim Cook warned in a second-quarter earnings call at the beginning of May that tariffs were expected to add $900m to costs in the third quarter. Hargreaves Lansdown's Britzman said that this "sounds big, but is relatively small in the grand scheme of things". Apple's second-quarter results topped estimates, with revenue of $95.4bn compared with forecasts of $94.5bn, and EPS of $1.65 compared to expectations of $1.62. Read more: Stocks that are trending today Britzman said that investors will "hoping for more meat on the AI bone" in this latest set of results. "Apple's relatively disappointing developer conference had a distinct lack of news on the AI strategy and investors are rightly looking for some updates," he said. "Apple's approach to AI has fallen well short of what investors and consumers have come to expect from one of the world's leading brands," he added. "Apple Intelligence has so far failed to deliver the game changing experience that was promised, so investors should watch out any updates on new AI features and where Apple stands with Siri, another product with huge potential but poor execution." Shell (SHEL.L) – Releases second quarter results on Thursday 31 July Shares in oil major Shell (SHEL.L) fell in early July on the back of a trading update, in which the company warned that it expected to report lower trading and production results for its gas division in the second quarter. Shell lowered the top end of its production guidance for the integrated natural gas division to 900,000 to 940,000 barrels of oil equivalent per day (boe/d) for the quarter, compared with a range of 890,000 to 950,000 previously given. The upper end of its outlook for its liquefied natural gas (LNG) production was also lowered, to 6.4 to 6.8 million metric tons compared with a previous range of 6.3 to 6.9 million tons. Shell raised the lower end of its output guidance for its oil-focused upstream division, to a range of 1.66 million to 1.76 million boe/d, up from a previous projection of 1.56 million to 1.76 million boe/d. Stocks: Create your watchlist and portfolio AJ Bell's investment experts Russ Mould and Dan Coatsworth said: "Shell's shares are down by around 6% in the past year and oil & gas producers is the seventh worst performer within the 39 sectors that make up the FTSE All-Share (^FTAS) thanks, in the main, to soggy oil prices. "At the same time, the share price seems to be doing its best to ignore a steady recovery in natural gas, although is still not actually that far below May 2024's all-time high." In the full second quarter results next week, they said that analysts are looking for pre-tax profit of $5.5bn, down from $9bn in the first three months of the year and $7.4bn a year ago. As for Shell's preferred metric of adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA), the benchmark is the $16.8bn figure the company reported in the second quarter of last year. "In terms of cash returns, Shell kept its quarterly dividend unchanged at 35.8 US cents in the first quarter (equivalent to a cash payout of $2.2bn)," said Mould and Coatsworth. "The oil major also ran a $3.5bn buyback in Q2 after a $3.3bn scheme in Q1 and analysts and shareholders will look to see what chief executive Wael Sawan offers for the third quarter." AstraZeneca (AZN.L) – Releases first half results on Tuesday 29 July Earlier this week, AstraZeneca (AZN.L) announced plans to invest $50bn in the US by 2030, as the threat of Trump's tariffs loom over the sector. AstraZeneca said in a statement on Monday that the cornerstone of this investment will be a new multi-billion dollar manufacturing facility in Virginia. In addition, the company said that the investment would go towards other facilities in the US, including a research and development centre in Cambridge, Massachusetts, as well as manufacturing facilities for cell therapy in Maryland and California. Read more: NatWest beats on profits and announces £750m share buyback AstraZeneca said that these investments would collectively help the company deliver its goal of reaching $80bn in total revenue by 2030, of which 50% is expected to be generated in the US. The announcement comes as the Trump administration carries out a Section 232 probe to determine which drug manufacturers are operating in countries that pose a national security threat to the US. Trump teased earlier this month that an announcement around pharmaceuticals tariffs would be coming soon, saying in a cabinet meeting that the rate could be as high as 200%. In terms of performance, AstraZeneca (AZN.L) posted a 10% increase in revenue in the first quarter to $13.6bn, which it said was driven by double-digit growth in oncology and biopharmaceuticals. Reported earnings per share of $1.88 were up 34% on the same quarter last year. At the time, AstraZeneca reiterated its guidance for the year, expecting total revenue to increase by a high single-digit percentage and core EPS to grow by a low double-digit percentage. HSBC (HSBA.L) – Releases first half results on Wednesday 30 July In the first quarter, HSBC (HSBA.L) posted a $3.2bn drop in pre-tax profits to $9.5bn compared with the same period last year, though this was well ahead of expectations of $7.8bn, according to Reuters. HSBC said the drop was primarily because of the net impact in the first quarter of last year of business disposals in Canada and Argentina. The bank said that contributors to profits in the latest quarter included strong performance in its wealth business, as well as in foreign exchange (forex), debt and equity markets. Net interest income (NII) – the gap between what it pays out to savers and receives from borrowers in interest – fell by $0.4bn to $8.3bn. Revenue fell by $3.1bn, or 15%, year-on-year to $17.6bn. Read more: IMF wants Bank of England to ease interest rates 'gradually' HSBC said its board had approved a first interim dividend of $0.10 per share and planned to launch a share buyback of up to $3bn, which it expected to begin shortly after its annual general meeting on 2 May and complete before its interim results announcement. Richard Hunter, head of markets at Interactive Investor, said: "The overhang from China and the tariff trade wars may not be central to its numbers next week from an investment viewpoint. Whereas HSBC had been moving towards becoming a business with a slavish reliance on interest rate movements and levels, the revised and increasing focus on the growth in affluent wealth, especially in Asia, is key to the new offering. "The group has been investing heavily in this move, giving HSBC higher, but more diversified income streams," he added. " "Apart from the longer-term potential for the key Chinese market, the group previously identified areas such as India and Vietnam as being some of the fastest growing economies at present, while the building economic connections between Asia and the Middle East, notwithstanding any geopolitical conflicts, are also emerging opportunities for HSBC with its sprawling footprint." Other companies reporting next week include: Monday 28 July Primary Health Properties (PHP.L) Science Group (SAG.L) Cranswick (CWK.L) Essilor Luxottica ( Heineken ( Porsche ( Tuesday 29 July Games Workshop (GAW.L) Croda (CRDA.L) ConvaTec (CTEC.L) Shaftesbury Capital (SHC.L) Morgan Sindall (MGNS.L) Greggs (GRG.L) Inchcape (INCH.L) Staffline (STAF.L) SThree (STEM.L) Forterra (FORT.L) Restore (RST.L) AG Barr (BAG.L) Tristel (TSTL.L) Advantest (6857.T) NEC (6701.T) L'Oréal ( Christian Dior ( Air Liquide ( Orange ( Ferrovial ( Philips ( Endesa ( Kering ( Logitech ( Brembo ( TF1 ( Visa (V) Procter & Gamble (PG) Merck (MRK) United Health (UEEC) Boeing (BA) Spotify (SPOT) Starbuck's (SBUX) Royal Caribbean Cruises (RCL) Mondelez (MDLZ) UPS (UPS) Norfolk Southern (NSC) Electronic Arts (EA) Sofi Technologies (SOFI) Teradyne (TER) Qorvo (QRVO) Caesar's Entertainment (CZR) Wednesday 30 July Hargreaves Services (HSP.L) Rio Tinto (RIO.L) GSK (GSK.L) Bodycote (BOY.L) Hostelworld (HSW.L) Franchise Brands (FRAN.L) Fujitsu (6702.T) Kyocera (6971.T) Japan Airlines (9201.T) Alibaba (BABA, Prada ( Hermès ( Airbus ( UBS ( Banco Santander (BNC.L) Intesa SanPaolo ( Siemens Healthineers ( Danone ( Mercedes Benz ( Caixa Bank ( Adidas ( BASF ( Wolters Kluwer ( CapGemini ( Telefonica ( Leonardo ( Carrefour ( Krones ( Meta Platforms (META) Qualcomm (QCOM) ARM (ARM) LAM Research (LRCX) Altria (MO) Hess (HES) Carvana (CVNA) Ford (F) American Eagle (AEO) Hershey (HSY) GE Healthcare (GEHC) Kraft Heinz (KHC) eBay (EBAY) Smurfit Westrock (SW) Skyworks (SWKS) F5 (FFIV) Alamos Gold (AGI) MGM Resorts (MGM) Harley Davidson (HOG) Thursday 31 July British American Tobacco (BATS.L) Unilever (ULVR.L) London Stock Exchange (LSEG.L) Rolls-Royce (RR.L) SEGRO (SGRO.L) Standard Chartered (STAN.L) Haleon (HLN.L) Mondi (MNDI.L) Weir (WEIR.L) Endeavour Mining (EDV.L) Schroders (SDR.L) Drax (DRX.L) Elementis (ELM.L) Hammerson (HMSO.L) Spire Healthcare (SPI.L) Helios Towers (HTWS.L) Indivior (INDV.L) Sabre (SBRE.L) Coats (COA.L) Robert Walters (RWA.L) Nichols (NICL.L) Toyota Motor (7203.T) Hitachi (6501.T) Tokyo Electron (8035.T) Japan Tobacco (2914.T) Samsung Electronics ( Budweiser APAC ( Schneider Electric ( Sanofi ( ABInBev ( Ferrari (RACE) ENEL ( BBVA (BVA.L) Universal Music ( BMW ( St Gobain (COD.L) Subsea 7 ( Pirelli ( Clariant ( UCB ( Legrand ( Amadeus IT ( Société Générale ( ArcelorMittal ( Mediobanca ( Lufthansa ( AirFrance-KLM ( Amazon (AMZN) Mastercard (MA) AbbVie (ABBV) Stryker (SYK) Comcast (CMCSA) KLA-Tencor (KLAC) KKR (KKR) Bristol-Myers Squibb (BMY) Coinbase (COIN) CVS (CVS) Cigna (CI) Roblox (RBLX) Ingersoll-Rand (IR) Clorox (CLX) Baxter (BAX) Norwegian Cruise Lines (NCLH) Shake Shack (SHAK) Verona Pharma (VRNA) Azenta (AZTA) Friday 1 August International Consolidated Airlines (IAG.L) Intertek (ITRK.L) Melrose Industries (MRO.L) Pearson (PSON.L) IMI (IMI.L) KDDI (9433.T) TDK (6762.T) Suzuki Motor (7269.T) Nippon Steel (5401.T) Yamaha (YAMCF) Daimler Truck (DTG) AIB (AIBGY) Jeronimo Martins (JRONF) ConocoPhillips (COP) Kimberly-Clark (KMB) AngloGold Ashanti (AU) DraftKings (DKNG) Moderna (MRNA) Icahn Enterprises (IEP) Goodyear Tire (GT) You can read Yahoo Finance's full calendar here. Read more: UK set to lose 16,500 millionaires this year as non-dom status ends UK's rising debt cost puts Reeves and tax rises in spotlight London IPO fundraising slumps in blow to UKError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
