Microsoft CEO Satya Nadella has openly expressed concerns about the company’s future, highlighting the threat posed by artificial intelligence. Speaking at a recent company town hall, Nadella warned that Microsoft’s long-standing success could be at risk if it fails to adapt to rapid changes in AI technology. He also shared his personal worries about shifts in the company’s culture.

Nadella Warns About Potential Irrelevance

According to The Verge, Nadella said,
"Some of the greatest businesses we've built may not be as relevant in the future. Our industry is full of case studies of companies that were once great but suddenly disappeared."

He cited Digital Equipment Corporation (DEC) as an example of a company that failed to keep up with competitors like IBM and gradually vanished from the market.

Concerns About Microsoft’s Culture

Nadella’s remarks follow feedback from a UK-based employee who described Microsoft’s work environment as “colder, more rigid, and less empathetic.” Nadella acknowledged the need to rebuild trust and adjust the company culture to maintain employee engagement and innovation.

New Policies and Workforce Changes

Microsoft has introduced several workplace policy changes to encourage office presence, requiring employees to be on-site at least three days a week. Non-compliance may affect promotions.

In addition, the company has carried out mass layoffs to address declining performance. Earlier this year, Microsoft announced a 3% workforce reduction, equating to around 6,000 employees, with further policies set to be implemented from February 2026.