Microsoft Layoffs: Profits, CEOs, and a Culture of Fear?
This will be a rant, but a rant with roots in the belief that employee experience fosters customer experience. As it should be well-known by now, Microsoft fired around 9,000 employees in July, after doing some smaller layoff rounds already in 2025, totaling more than 15,000 employees according to the TechCrunch comprehensive list of 2025 tech layoffs. This continues a trend from 2023 and 2024. Now, I get it. Companies need to be and stay profitable, reorganize and, if needed, lay off employees. As such, there is nothing wrong with this. Where things start to get wrong is when at the same time two other things can be observed: strong and successful growth in revenues as well as profits, and very generous payments to the C-suite. Microsoft is immensely successful. For a long time now, we see record revenue and profits every quarter, which means strong growth. Looking at the most recent Q4/25 numbers, this is poised to continue and made Microsoft the second $4 trillion company after Nvidia. Consequently, Satya Nadella as the company CEO, receives an enormous total compensation ($ 79.1M in 2024). To compare this number, the average total compensation of a Microsoft employee is $220k with a median compensation of around $192k. This is a factor of 400. And no, this is not me being jealous. Microsoft’s written down corporate values are respect, integrity, and accountability. What triggered this text is the dissonance between all this that is also evident in Satya Nadella’s mail to the employees titled “Recommitting to our why, what, and how” that got published on the corporate blog on July...
SaaS or the Rise of the Undead
SaaS is dead! It will be replaced by agentic systems that replace coded business logic by AI agents that autonomously interact to bring said business logic to life, just smarter. Satya Nadella said it – or at least something in these lines, if I believe all the pundits around. His words lit up the Internet. And Satya Nadella being the CEO of a 3 trillion dollar company is the ultimate fount of truth and wisdom, when it comes to business applications. Is he not? So, what should we take from his statements? After all, the words of the CEO of one of the top 3 valuable companies on this Earth carry some weight. Let me start straight. I call BS! SaaS, first of all, is a delivery model of logic that also had some implications on vendors‘ business models and their approaches to pricing. For a variety of good and not so good reasons this delivery model succeeded vs. the prevalent model of on-premises software. Some of the more important reasons have been “no lock in by vendors”, “only pay for what you use”, “reduction of own infrastructure cost”. Of course, there are more. All of them being true – or not so much. One thing is for sure, SaaS led to a considerable centralization of compute resources. Hyperscalers emerged. Vendors took over the management of the application stack for their clients. It is very hard to envision that this gets reverted any time soon, even in a world with increasing trust issues and a good argument for edge computing. What SaaS is not, or only marginally, is a way...
The Generative AI Game of Thrones – Is OpenAI toast?
The News This has been an exciting weekend for the generative AI industry. On Friday November 17, OpenAI announced that the company fired its figurehead CEO Sam Altmann and appointed Chief Technology Officer Mira Murati as interims CEO in a surprise move. The press release states that Altmann “was not consistently candid in his communications with the board.” Surprised was apparently not only Sam Altmann, but also the till then chairman of the board Greg Brockman who first stepped down from this position and subsequently quit OpenAI. Investors, notably Microsoft, found themselves blindsided, too – or flat footed depending on the individual point of view. Satya Nadella was compelled to state that Microsoft stays committed to the partnership with OpenAI in a blog post that got updated on November 19, 11:55 pm. All hell broke loose. Microsoft shares took a significant hit. A number of additional senior OpenAI personnel quit. Both, Altman and Brockman, voiced the idea of founding another startup together. Microsoft CEO Satya Nadella flew to San Francisco to negotiate a reinstatement of Altmann. It initially seemed that this would be going to happen, along with the complete board stepping down and being replaced by Silicon Valley tech executives. Apparently, this did not work out. The result is that Altmann, Brockman, and some other former senior OpenAI staff are now Microsoft employees, with Altmann becoming the CEO of a new advanced AI research unit. Also on Sunday, Emmett Shear, former CEO of Twitch, was appointed new interims CEO at OpenAI. Meanwhile, more than 500 of OpenAI’s employees, including former interims CEO Murati threatened to quit OpenAI and join Altmann at Microsoft, which apparently...