Microsoft CEO calls job cuts in the midst of big profits the 'enigma of success' in internal memo

Core Insights - Microsoft has announced significant job cuts, totaling approximately 15,000 employees, despite generating substantial profits and investing heavily in AI infrastructure [1][2] - The company's net income reached around $75 billion over the last three fiscal quarters, while it is investing $80 billion in AI [2] - Microsoft’s stock has increased by 21% this year, reaching a record high earlier in July [2] Group 1: Job Cuts and Company Performance - CEO Satya Nadella addressed the paradox of job cuts occurring alongside strong financial performance, stating that progress in the industry is dynamic and often dissonant [1][9] - Despite layoffs, Microsoft’s overall headcount remains relatively unchanged, and the company is recognized for its talent and expertise [2][8] - Nadella emphasized the importance of navigating through difficult processes to meet changing customer needs and to create new business models [10] Group 2: Strategic Focus and Future Direction - Microsoft aims to redefine its mission in the era of AI, shifting from a software factory to an intelligence engine that empowers individuals and organizations [14][16] - The company has identified three key business priorities: security, quality, and AI transformation, while continuing to innovate and improve operational metrics [17][18] - The cultural shift towards a growth mindset is crucial for Microsoft to adapt and thrive in the evolving tech landscape [20][22]