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After 6000 job cuts, Microsoft plans another layoff in July, CEO Satya Nadella says 'If you're going to use...'
After 6000 job cuts, Microsoft plans another layoff in July, CEO Satya Nadella says 'If you're going to use...'

India.com

timean hour ago

  • Business
  • India.com

After 6000 job cuts, Microsoft plans another layoff in July, CEO Satya Nadella says 'If you're going to use...'

After 6000 job cuts, Microsoft plans another layoff in July, CEO Satya Nadella says 'If you're going to use...' Microsoft CEO Satya Nadella is calling on the industry to think seriously about the real impact of artificial intelligence (AI) especially the amount of energy it uses. This comes as AI is quickly changing the tech world. Speaking at Y Combinator's AI Startup School, he said that tech companies need to prove that AI is creating real value for people and society. 'If you're going to use a lot of energy, you need to have a good reason,' Nadella said. 'We can't just burn energy unless we are doing something useful with it.' His comments come as AI is praised for pushing innovation forward, but also criticized for using massive amounts of electricity and possibly making social gaps worse. For Microsoft, one of the biggest companies building AI tools, this is a big concern. A report in 2023 estimated that Microsoft used about 24 terawatt-hours of power in a year. That's as much electricity as a small country uses in the same time. But Nadella believes AI should be judged by how well it helps people in real life. 'The real test of AI,' he said, 'is whether it can make everyday life easier—like improving healthcare, speeding up education, or cutting down on boring paperwork.' He gave the example of hospitals in the U.S., where simple things like discharging a patient can take too long and cost too much. He said if AI is used for this task, it could save time, money, and energy. Microsoft's AI push comes with job losses Even as Microsoft have big plans for AI, the changes have not come without a cost, especially for workers. Over the past year, the company has laid off more than 6,000 employees. Microsoft said these job cuts were part of 'organisational changes' needed to stay strong in a fast-changing business world. That fast-changing world is being shaped by artificial intelligence and cloud computing. Microsoft, working closely with its AI partner OpenAI, is putting AI at the center of its future plans. But as the company shifts toward more automation and AI-driven tools, it's also reorganizing teams, often leading to people losing their jobs. Microsoft is reportedly preparing for another round of job cuts and this time in its Xbox division. The layoffs are expected to be part of a larger corporate reshuffle as the company wraps up its financial year. If these cuts go ahead, it would be Microsoft's fourth major layoff in just 18 months. The company is facing increasing pressure to boost profits, especially after spending USD 69 billion to acquire Activision Blizzard in 2023.

Satya Nadella Urges AI to Serve Real Needs as Microsoft Faces Job Cuts and Energy Concerns
Satya Nadella Urges AI to Serve Real Needs as Microsoft Faces Job Cuts and Energy Concerns

Hans India

time7 hours ago

  • Business
  • Hans India

Satya Nadella Urges AI to Serve Real Needs as Microsoft Faces Job Cuts and Energy Concerns

As artificial intelligence continues to redefine the tech industry, Microsoft CEO Satya Nadella is calling for a more grounded and socially responsible approach. Speaking at Y Combinator's AI Startup School, Nadella emphasized that AI must go beyond flashy demonstrations and instead focus on solving real-world problems that impact everyday lives. 'The real test of AI,' Nadella said, 'is whether it can help solve everyday problems — like making healthcare, education, and paperwork faster and more efficient.' This call for pragmatism arrives at a pivotal moment for Microsoft. The tech giant recently laid off more than 6,000 employees, citing AI-driven organisational restructuring. While the company maintains that the changes are essential to thrive in an increasingly competitive and evolving marketplace, the human cost of such transformations cannot be ignored. In his address, Nadella didn't shy away from the deeper implications of the AI boom — particularly its environmental impact. Highlighting the substantial energy demands of large-scale AI systems, he warned that the industry must be ready to justify its consumption. 'If you're going to use energy, you better have social permission to use it,' he said. 'We just can't consume energy unless we are creating social and economic value.' According to a 2023 report by Clean View Energy, Microsoft consumed nearly 24 terawatt-hours of electricity in a single year — an amount comparable to that used by a small nation. With AI infrastructure now a central pillar of its business strategy, the pressure is on Microsoft to ensure that this power usage yields tangible benefits. Nadella offered the American healthcare system as a key example of where AI could make a real difference. He pointed to hospital discharges as a process that could be vastly improved with AI-driven solutions, reducing delays, cutting costs, and streamlining administration. 'A simple thing like hospital discharge — if done with an AI model — can save time, money, and energy,' he noted. Despite this optimism, the transformation is not without its difficulties. The recent job cuts reflect broader corporate changes as Microsoft prioritizes AI and cloud capabilities. Sources now indicate that another round of layoffs could be on the horizon — this time affecting the Xbox gaming division — as the company closes out its financial year. If confirmed, this would mark the fourth major round of job reductions at Microsoft within just 18 months. The restructuring follows its massive $69 billion acquisition of Activision Blizzard in 2023 and a renewed focus on profitability, AI, and gaming. Nadella's message is clear: AI's future must be tied to meaningful, inclusive progress. For companies like Microsoft, the challenge lies in navigating the fine line between innovation and responsibility. As AI reshapes industries, the tech world must ensure its promises justify its costs — both human and environmental.

Satya Nadella wants AI to solve real problems after Microsoft cuts 6,000 jobs, more layoffs likely in July
Satya Nadella wants AI to solve real problems after Microsoft cuts 6,000 jobs, more layoffs likely in July

India Today

time9 hours ago

  • Business
  • India Today

Satya Nadella wants AI to solve real problems after Microsoft cuts 6,000 jobs, more layoffs likely in July

As artificial intelligence rapidly reshapes the tech landscape, Microsoft CEO Satya Nadella is urging the industry to take a hard look at the real-world value it delivers, especially considering the immense energy AI systems consume. Speaking at Y Combinator's AI Startup School, Nadella challenged the tech world to justify the environmental cost of powering large-scale AI. 'If you're going to use energy, you better have social permission to use it,' he said. 'We just can't consume energy unless we are creating social and economic value.'advertisementNadella's comments come at a time when AI is being hailed as the future of innovation, but also criticised for its potential to widen inequalities and burn through resources. For Microsoft, one of the largest builders of AI infrastructure in the world, the question hits particularly close to home. A 2023 report by Clean View Energy estimates Microsoft used around 24 terawatt-hours of electricity last year—roughly equivalent to the annual consumption of a small Nadella insists that the measure of AI's success lies in whether it can simplify daily challenges. 'The real test of AI,' he explained, 'is whether it can help solve everyday problems — like making healthcare, education, and paperwork faster and more efficient.' He offered a striking example of the American healthcare system, where inefficiencies often inflate costs. 'A simple thing like hospital discharge — if done with an AI model — can save time, money, and energy,' he said, highlighting how AI could help untangle bureaucratic knots in overburdened despite the optimism, Microsoft's AI-driven vision for the future is not without its human cost. In the past year alone, the company has laid off over 6,000 employees, attributing the job cuts to shifts driven by AI and automation. In a statement, Microsoft described the layoffs as part of 'organisational changes necessary to best position the company for success in a dynamic marketplace.'That dynamic marketplace, of course, is increasingly defined by AI tools and cloud platforms. Microsoft, alongside its strategic partner OpenAI, has placed AI at the heart of its business transformation. But with that transformation comes a wave of internal restructuring—often at the expense of human the shake-ups might not be over. Reports now suggest that Microsoft is planning another round of layoffs, this time targeting its Xbox division. The move is said to be part of a broader corporate reorganisation as the company nears the end of its financial carried out, it would mark the fourth major round of job cuts at Microsoft in just 18 months. The company is under mounting pressure to improve profitability following its $69 billion acquisition of video game giant Activision Blizzard in 2023. With shareholders watching closely, the company appears determined to trim costs and double down on its AI and gaming in all, this only proved that it is a balancing act -- building the future with advanced technology while proving that the immense energy usage and the workforce disruptions involved are worth it. - Ends

9 Indian-origin CEOs leading global companies: Where they studied
9 Indian-origin CEOs leading global companies: Where they studied

Time of India

timea day ago

  • Business
  • Time of India

9 Indian-origin CEOs leading global companies: Where they studied

Sundar Pichai and Satya Nadella Indian-origin leaders have risen to helm some of the world's most influential corporations—from Google to Chanel—leveraging rigorous Indian education and global experiences to drive innovation and growth. Their journeys spotlight the power of strong academic foundations in shaping visionary leadership. These nine executives exemplify this trend. Each brings a unique story of engineering prowess, business acumen, and cultural adaptability. Their careers illustrate how education at both Indian and international institutions can fuel extraordinary global impact. Sundar Pichai Born June 10, 1972 in Madurai, Tamil Nadu. Son of Lakshmi (stenographer) and Regunatha Pichai (electrical engineer). Raised in Chennai, he attended IIT Kharagpur ( Metallurgy), Stanford (M.S.), and Wharton (MBA). Now CEO of Google (since 2015) & Alphabet (since 2019), residing in California. Satya Nadella Born August 19, 1967 in Hyderabad to Prabhavati (Sanskrit lecturer) and Bukkapuram Nadella Yugandhar (IAS officer). Alumnus of Hyderabad Public School and Manipal Institute (B.E.), followed by an M.S. at University of Wisconsin-Milwaukee and MBA from Chicago Booth. CEO & Chairman of Microsoft, currently based in Redmond, USA. Shantanu Narayen Born May 27, 1963 in Hyderabad to a plastics-business father and literature-professor mother. Studied Electronics Engineering at Osmania University, followed by an M.S. in Computer Science (Bowling Green State) and MBA from UC Berkeley Haas. CEO & Chairman of Adobe since 2007, living in California. Ajay Banga Born November 10, 1959 in Khadki, Pune into an Indian Army family; father Lt-Gen Harbhajan Banga. Studied at Delhi University (B.A. Economics) and IIM Ahmedabad (MBA). Former CEO of MasterCard, now President of World Bank (since June 2023), based in Washington, D.C. Arvind Krishna Born November 23, 1962 in West Godavari, Andhra Pradesh. Son of parents with military-related background . Trained at IIT Kanpur ( and University of Illinois (Ph.D. EE). Joined IBM in 1990, now CEO (since 2020) and Chairman (since 2021), living in New York metro area. George Kurian Born 1967 in Kottayam, Kerala. Studied B.S.E.E. at Princeton and M.S. E.E./C.S. at Stanford. Joined NetApp in 2011 and became CEO in June 2015, now leading enterprise data systems from Silicon Valley. Nikesh Arora Born February 9, 1968 in Ghaziabad; son of an Indian Air Force officer. Studied at The Air Force School (Subroto Park), IIT-BHU ( EE), Boston College and Northeastern (MBA). CEO & Chairman of Palo Alto Networks since June 2018, based in California. Leena Nair Born June 11, 1969 in Kolhapur, Maharashtra. Obtained B.E. in Electronics from Walchand College and gold-medalist MBA from XLRI Jamshedpur. Previously CHRO at Unilever, now CEO of Chanel since January 2022, residing in Paris. Ravi Kumar S Born in India (Mumbai region); educational credentials include B.E. from Shivaji University and MBA from Xavier Institute of Management, Bhubaneswar. Served as President at Infosys (2016–2022), became CEO of Cognizant in January 2023, currently based in New Jersey area. Is your child ready for the careers of tomorrow? Enroll now and take advantage of our early bird offer! Spaces are limited.

Microsoft to cut more jobs in Xbox division, even though profits have been up in recent months
Microsoft to cut more jobs in Xbox division, even though profits have been up in recent months

Time of India

time2 days ago

  • Business
  • Time of India

Microsoft to cut more jobs in Xbox division, even though profits have been up in recent months

(Image via Pixabay) Microsoft is reportedly gearing up for another round of major job cuts across its Xbox division. This move comes as part of a wider company-wide restructuring spree that's been going on for the past 18 months. With mounting pressure to boost profits post-Activision Blizzard's $69 billion acquisition, the Xbox team seems to be next on the chopping block. A Fourth Wave of Cuts Hits Xbox Sources close to the matter say Microsoft is preparing substantial job cuts in its Xbox division, possibly as early as next week. These layoffs aren't just limited to one team or region. Managers across Xbox are reportedly bracing for wide-scale reductions. And if you've been following Microsoft's moves lately, this won't come as a total shock. This will be the fourth major layoff round for Xbox since early 2023. Not to forget, several Xbox game studios were already shut down in 2024. It's starting to feel like a pattern, and not the good kind. Xbox Planning Job Cuts, Even Though Revenue Is Up - Inside Games Daily Pressure Mounts Post-Activision Deal After Microsoft dropped a jaw-dropping $69 billion on Activision Blizzard in 2023, expectations shot through the roof. That deal, the biggest in Microsoft's history, was meant to transform Xbox into a global gaming powerhouse. But now, the pressure to deliver profits has reached a whole new level. From hardware to game studios, everything is being evaluated. The company wants leaner operations, fatter margins, and a smoother ride heading into the close of its fiscal year on June 30. Layoffs Across Microsoft Continue These upcoming cuts are part of a broader Microsoft layoff spree. Earlier this month : 300+ roles gone Just weeks before that : 6,000 jobs slashed Since Jan 2023 : Over 16,000 roles eliminated This isn't random. It's Microsoft's attempt to correct the over-hiring that happened during the pandemic boom. As demand slowed and macroeconomic conditions shifted, reality hit hard. Satya Nadella Frames It as 'Repositioning' During an earlier internal town hall, Microsoft CEO Satya Nadella addressed concerns about the ongoing layoffs, calling them a 'repositioning' rather than a performance issue. 'This was not about people failing. It was about repositioning for what comes next,' Nadella reportedly said. However, the mounting cuts, particularly within a high-profile division like Xbox, signal more than just repositioning. They hint at a deeper restructuring of Microsoft's gaming ambitions. Microsoft Gaming Xbox Layoffs Coming Next Week - What About Warcraft Rumble? What Does This Mean for Xbox's Future? At the time of writing, Microsoft hasn't dropped an official statement about the upcoming Xbox cuts. But if Bloomberg's report is accurate, and it usually is, we could hear something very soon. What's certain is this: Xbox is entering a new phase. Between Activision integration, financial scrutiny, and constant restructuring, the gaming division is being tested like never before. Game On Season 1 continues with Mirabai Chanu's inspiring story. Watch Episode 2 here.

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