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Microsoft's Maddening Messaging

Writer's picture: David PullaraDavid Pullara

The headline was damning, but you can't blame companies for media headlines.

A screenshot of a CNBC media snippet showing a photo of Microsoft CEO Satya Nadella alongside a headline that reads "Microsoft confirms performance-based job cuts across departments."

You can blame them for what their company spokespeople say, though.


A screenshot of a CNBC article showing a photo of Microsoft CEO Satya Nadella and a bullet point, circled in red, that reads: ""When people are not performing, we take the appropriate action," a Microsoft spokesperson said in an email, confirming the job cuts."

"When people are not performing, we take the appropriate action," a Microsoft spokesperson said in an email, confirming the job cuts.


Why would Microsoft do this?


I'm not referring to the job cuts themselves. Companies are consistently looking for ways to do more with less, and you'd certainly expect a company investing billions in artificial intelligence to look extra hard for technology-driven efficiencies.


So I'm not surprised about the layoffs, even from a company that reported a net income of over $88.14 billion USD in FY24 (an increase from $72.36 billion USD in FY23).


But what's with Microsoft's maddening messaging?


Why did Microsoft need to specify that those who would be let go would be shown the door because they were "not performing"?


Doing so puts a scarlet letter on anybody leaving Microsoft around this time (even if it's NOT for poor performance or has nothing to do with this restructuring) and makes finding new employment more difficult.


(And let's not forget a simple truth: not everybody who leaves as part of a restructuring does so due to poor performance; that's an outdated stereotype that serves no useful purpose.)


The downside to the departing employees is clear.


And the downside to Microsoft?


I'm not a lawyer, but I'd be surprised if quotes like this from Microsoft spokespeople didn't open them up to a class action lawsuit for libel (unless that "poor performance" could be proven without a shadow of a doubt).


So what's the upside?


What does Microsoft gain by making life more difficult for all these people, especially when a blanket "the incredible AI technologies we've developed at Microsoft have reduced the need for an expanded workforce" type statement would have been perfectly credible?


Microsoft CEO Satya Nadella has, by all accounts, done an incredible job reversing the public's perception of Microsoft, a company not so long ago perceived as having a slow, lumbering, and cutthroat culture.


I'm normally a big fan of Microsoft.


But this?


This is not a good look.



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   â€‹â€‹© 2024 by David Pullara. All rights reserved.

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