Microsoft CEO Satya Nadella has shared his worries about the company’s ability to stay relevant in the fast-changing world of artificial intelligence. In a recent employee-only town hall, Nadella reflected on how tech giants can lose their edge if they fail to evolve, pointing to Digital Equipment Corporation (DEC) as a stark example.
At the heart of his message was a haunting reminder of the fate that can befall once-dominant tech companies. “Some of the biggest businesses we’ve built might not be as relevant going forward,” Nadella said, emphasising the urgency to keep innovating. He cited DEC’s downfall, attributing it to its inability to keep pace with new technologies like Reduced Instruction Set Computing (RISC). Once a leader in the 1970s, DEC lost ground to competitors like IBM, ultimately becoming obsolete, according to The Verge report.
Nadella shared a personal connection to DEC, revealing that his first computer was a DEC VAX and that he once dreamed of working there. “Some of the people who contributed to Windows NT came from a DEC lab that was laid off,” he added, underscoring how talent and innovation must be nurtured continuously, the report added.
Addressing Employee Concerns About Culture
The CEO’s remarks came in response to a UK employee’s feedback about Microsoft’s shifting work environment, described as “markedly different, colder, more rigid, and lacking in the empathy we have come to value.” Nadella took this critique seriously, acknowledging that empathy within the company culture has diminished, noted the report.
Commitment To Rebuild Trust And Empathy
“I deeply appreciate that, the question and the sentiment behind it. I take it as feedback for me and everyone in the leadership team,” Nadella said, promising to improve. The report further claims, “At the end of the day, I think we can do better, and we will do better,” he assured employees, emphasising leadership’s responsibility to foster a supportive workplace. This comes amid recent layoffs affecting thousands, making cultural rebuilding a critical priority for the company.