Microsoft Layoffs Part of New Normal in AI Revolution

In today's Cloud Wars Minute, I analyze the recent Microsoft
layoffs.


Highlights


00:14 — It's an ugly part of the free-market
capitalism world, but what is inevitable in some ways — is
layoffs. In the first six months of this year, Microsoft has laid
off 15,000 people. I think we need to look at this as part of the
new normal. It's an unfortunate consequence of the AI revolution
and the incredible benefits and growth that it’s going to drive.


01:08 — I think we've seen a lot of people say,
“Oh, here it comes, AI is displacing people.” These big companies
are going to try to cut costs. They’re trying to reduce expenses.
I think here, the focus isn’t on cutting costs, saving money, and
dumping people, but rather on: Can we be prepared as quickly as
possible for a very, very different future?


02:12 — And that’s what this AI revolution is
going to bring. I think Nadella is trying very hard here to
ensure that they’ve got their entire workforce aligned on growth
opportunities for the future and all the changes that the AI
revolution is going to bring to Microsoft’s customers, rather
than, you know, piddling around with, “How do we save a couple
bucks here and there?”


03:03 — Every process is ultimately going to be
affected by this. It’s going to change how companies think, how
they work, how they operate, what their processes are, how they
grow, how they make money. Any company that wants to stay in
business is going to realign its workforce to match up with those
new opportunities. That’s what I believe Microsoft is doing.


04:27 — I think we’re going to see that across
every industry, every region of the world. One of the outcomes is
that we’ll see some people moved around to new opportunities
inside companies, but we’re also going to see some people let go
because they either don’t have the backgrounds, the mindset, or
whatever it might be, to match up with what their businesses
need.


Visit Cloud Wars for more.