Microsoft CEO Satya Nadella is leading an aggressive AI transformation across the company. According to leaked internal communications and interviews with company leaders, Nadella is pressuring veteran executives to commit fully to this major overhaul or leave the company.
AI earthquake at Microsoft: Adapt or leave!
The 50-year-old software giant is undergoing a radical transformation that Nadella describes as a “tectonic AI platform shift.” The CEO is holding direct talks with executives about signing up for the transformation or parting ways. The “intensity and urgency” demanded by Nadella has led some long-term Microsoft employees to question their continued presence in the company due to the increased workload.
In late September, Nadella made a significant leadership change to dedicate more time to technical AI work. Judson Althoff, Microsoft’s longtime chief sales officer, was promoted to CEO of the company’s commercial operations. This move marked a significant shift; Althoff delivered the opening keynote at the Ignite conference in November. This marked the first time during Nadella’s tenure that he didn’t personally lead the company’s most important event.
The CEO also initiated weekly meetings where lower-level technical employees, rather than executives, were encouraged to discuss developments in the “AI trenches.” This approach aims to avoid classic top-down leadership and quickly generate ideas across the organization. In a communication channel created for corporate vice presidents and above, Nadella urged leaders to work as “individual contributors,” focusing on technical tasks rather than management. He noted that AI initiatives operate more agilely and quickly, asking executives to create a similar culture within Microsoft.
According to sources, Rajesh Jha, longtime head of Office and Windows, is considering retirement, but may stay due to his excitement about the potential of AI. Charlie Bell, who heads the cybersecurity division, is also rumored to be retiring. Microsoft spokesperson Frank Shaw stated that the company does not expect changes to its senior management team in the short term. If Jha leaves, it’s suggested that LinkedIn CEO Ryan Roslansky could replace him, expanding his area of responsibility.
Nadella, describing Microsoft’s position on AI, stated that they are no longer in the early stages but “in the middle” of the process, demonstrating their intention to see the transformation through to the end. One executive said these organizational changes have given Nadella extra time to focus on product development and engineering, and that the strategy is bearing fruit.
What are your thoughts on this pressure Microsoft is putting on its executives and its aggressive AI strategy?
