Microsoft Chief Executive Officer Satya Nadella has admitted to being “haunted” by the thought that the company may not endure the rapid transformation brought about by artificial intelligence. Speaking during a recent employee-only town hall, Nadella reflected on both cultural concerns within Microsoft and the risks of technological disruption.
Responding to a question from a UK-based employee about a growing sense of rigidity and lack of empathy at the company, Nadella acknowledged the criticism but also turned to broader worries about Microsoft’s future. “Some of the biggest businesses we’ve built might not be as relevant going forward,” he said, adding that the possibility of losing relevance in the AI era weighs heavily on him.
To underscore his point, Nadella recalled the downfall of Digital Equipment Corporation (DEC), a computing pioneer in the 1970s that failed to adapt to changes in chip architecture and ultimately disappeared from the market. “Our industry is full of case studies of companies that were great once, that just disappeared. I’m haunted by one particular one called DEC,” he said.
Nadella, who noted that his first computer was a DEC VAX and that he once aspired to work at the company, pointed out that some of DEC’s laid-off engineers later went on to contribute to Microsoft’s Windows NT. He used the example to remind employees that talent and adaptability are critical to staying relevant.
On the cultural front, Nadella admitted Microsoft must rebuild trust with employees after several rounds of layoffs in recent months. “I deeply appreciate the sentiment behind your question. I take it as feedback for myself and the leadership team. At the end of the day, I think we can do better, and we will do better,” he said, according to an audio recording obtained by CNBC.
The remarks highlight the dual challenge facing Microsoft: preserving employee confidence while navigating one of the most disruptive technological shifts in decades.
