Microsoft CEO Satya Nadella recently addressed the layoff of around 6,000 employees, clarifying that the move was not due to poor performance. Instead, the layoffs were part of an organizational restructuring aimed at realigning the company’s operations with its growing emphasis on artificial intelligence (AI).
Shift Toward an AI-First Strategy
Nadella emphasized that Microsoft is transitioning into an “AI-first” company. This means a reallocation of resources and talent toward business areas that support AI development and integration. The decision reflects Microsoft’s broader strategic direction focused on long-term technological transformation.
Boosting AI in India Through Yotta Partnership
In a major move to support AI development in India, Microsoft has partnered with Yotta Data Services, a leading provider of sovereign cloud infrastructure in the country. The collaboration aims to support IndiaAI Mission stakeholders, including government bodies, IITs, startups, enterprises, and developers.
Under this partnership, Microsoft will bring its AzureAI services to Yotta’s Shakti Cloud platform, making advanced AI tools accessible across various sectors in India.
Empowering India’s AI Ecosystem
Puneet Chandok, President of Microsoft India and South Asia, said the partnership will help scale AI innovation and is designed to meet India’s specific needs. He added that Microsoft is committed to supporting India’s ambitions in the AI space through customized and inclusive technological solutions.
Earlier Collaboration with IndiaAI
This announcement follows an earlier initiative from January 2025, when Microsoft joined hands with IndiaAI, a division under Digital India Corporation. That collaboration aimed to foster AI and emerging technologies through the creation of AI Centres of Excellence and AI Productivity Labs focused on inclusive and scalable innovation.
Microsoft’s recent strategic moves—including global restructuring and deepening engagement in India—highlight its strong focus on AI transformation. The company is not only reshaping its internal structure but also aiming to play a major role in developing AI ecosystems in emerging markets like India.
