Speaking at an internal town hall meeting, Nadella acknowledged the emotional toll of the layoffs, calling them a “realignment” rather than a reflection of employee talent, reported India Today.

In the meeting, he explained, “This was not about people failing. It was about repositioning for what comes next.”

According to reports, the company is now focusing on expanding its AI-first strategy.

More Job Cuts

IT major Microsoft on Tuesday announced that an additional 300 people have been laid off following the recent round of job cuts, media reports said.

A Microsoft spokesperson told Bloomberg that the latest headcount reduction is in addition to the 6,000 job cuts announced last month.

“We continue to implement organizational changes necessary to best position the company for success in a dynamic marketplace,” the spokesperson said.

The IT industry is witnessing a major shift with several companies implementing AI in their systems.

The companies are focusing on AI-centric jobs in recent times.

According to reports, the company's previous layoff had hit the software engineers hardest.

However, it could not be ascertained which jobs were affected due to Monday's round of layoffs.