Microsoft CEO Satya Nadella: Speaking at a town hall meeting for employees, Nadella expressed his concern about whether Microsoft can survive in the age of artificial intelligence (AI). While initially responding to a question about alleged changes to the company culture, his answer revealed his personal anxieties about the company’s future. According to The Verge, Nadella stated at the town hall last week, “Some of the biggest businesses we’ve built may not be as relevant in the future.”
CEO Satya Nadella warned employees about the future of technology.
He cited the example of Digital Equipment Corporation (DEC), once a major tech company, which faded away because it failed to adapt to new technologies like Reduced Instruction Set Computing (RISC) architecture. Nadella said, “There are many examples in our industry of companies that were once very large but are now gone. I remember an example like DEC.” He further explained that DEC, a leader in the early 1970s, faced stiff competition from companies like IBM, which led to its decline.
The Microsoft CEO said that his first computer was a DEC VAX, and he always wanted to work there. He reflected on what a company needs to do to not only remain successful but also attract top talent. Nadella added, “Some of the people who contributed to Windows NT came from the DEC labs, which were shut down.” He made this comment in response to a question from a UK employee who described the company’s atmosphere as “quite different, cold, rigid, and lacking empathy.”
What CEO Satya Nadella Said (in simpler words)
| + At a town hall meeting, Microsoft CEO Nadella admitted he’s concerned that some of Microsoft’s biggest businesses may become less relevant or even irrelevant in the AI era. + He referenced Digital Equipment Corporation (DEC) as a cautionary tale: DEC was once a major computing company, but lost relevance because it didn’t adapt to changes like RISC architecture. + He also said things people long thought valuable (for example, product lines or business lines Microsoft has “loved” for 40 years) might not matter in years to come. + Additionally, he stressed that survival will depend on continuously adding value, not being complacent with past successes. |
The CEO of Microsoft recently told employees that the organization needs to “do better” to rebuild trust with its workforce, acknowledging a lack of empathy within the company culture. According to an audio recording obtained by CNBC, he said, “I fully respect this question and the sentiment behind it. I take it as feedback for myself and all members of the leadership team, because ultimately, I think we can do better, and we will.” The company had recently laid off thousands of employees across several departments.
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