Satya Nadella Explains 6,000 Microsoft Layoffs – CPO Offers Vital Tips for Coders

In a recent company-wide town hall, Microsoft CEO Satya Nadella addressed the tech giant’s decision to lay off approximately 6,000 employees representing nearly 3% of its global workforce. Nadella emphasized that the layoffs were not performance-related but stemmed from broader structural changes as the company pivots to a more AI-centric future.

“This is a structural change, not a reflection of how people were performing,” Nadella clarified, explaining that Microsoft is realigning its resources and strategy to prioritize artificial intelligence, which it sees as the foundation of its long-term growth.

At the same event, Microsoft Chief Product Officer Aparna Chennapragada tackled growing concerns about the relevance of coding in the AI era. She firmly rejected the idea that learning to code is outdated or no longer valuable, saying, “I completely disagree” with those who claim computer science education has lost its importance.

Microsoft has announced plans to invest nearly $80 billion this fiscal year to enhance its AI infrastructure. This includes expanding its AI-powered Copilot assistant across various product suites and customer segments, reinforcing its commitment to AI innovation.

The layoffs disproportionately affected product development and engineering teams, highlighting the deep impact AI is having even on core technical roles within the company.

Separately, Microsoft confirmed the termination of Joe Lopez, a firmware engineer from the Azure Hardware Systems and Infrastructure (AHSI) division. His dismissal followed a disruption during Satya Nadella’s keynote at the Microsoft Build 2025 conference.