Microsoft CEO Satya Nadella has said that “Microsoft is thriving” by every objective measure, despite recent job cuts which has seen thousands of people leave the company.

In a letter sent to Microsoft employees, Nadella finally addressed the cuts, writing, “By every objective measure,Microsoftis thriving—our market performance, strategic positioning, and growth all point up and to the right. We’re investing more in CapEx than ever before.

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“Our overall headcount is relatively unchanged, and some of the talent and expertise in our industry and at Microsoft is being recognized and rewarded at levels never seen before. And yet, at the same time, we’ve undergone layoffs.”

Nadella referred to this as “the enigma of success,” stating that the layoffs presented an opportunity for the company to “shape, lead through, and have a greater impact than ever before.”

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Nadella went on to evangelise Microsoft’s AI ambitions. The AI sector, which Microsoft has reportedly invested billions of dollars in, is the company’s primary focus, viewing it as the next battleground to be won in the digital space, followingGoogle‘s domination of search and video.

“Just imagine if all 8 billion people could summon a researcher, an analyst, or a coding agent at their fingertips, not just to get information but use their expertise to get things done that benefit them,” Nadella wrote.

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“Consider how organizations, empowered with AI, could unlock entirely new levels of agility and innovation by transforming decision-making, streamlining operations, and enabling every team to achieve more together than ever before.”

Microsoft announced sweeping layoffs earlier this month, which couldresult inover 9,000 staff memberslosing their jobs.

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In the company’s gaming sector, the troubled reboot ofPerfect Darkhas been cancelled, andThe Initiativehas been closed.Rare’s Everwildhas also been cancelled, andseveral senior developers have left the historic studio.

ZeniMax Online Studios boss Matt Firorhas also announced that he is leaving the studioamid the cancellation of Project Blackbird, a long-in-development project at the studio.

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