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Nadella Slams AI Job-Cut Hype, Ends Israel Defense Contract

6/23/2026

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Story summary
  • Satya Nadella rebuked rival tech leaders for glorifying AI-driven job cuts and said Microsoft will prioritize a worker-focused reorganization.
  • Microsoft ended contracts with the Israeli Ministry of Defense after employee pressure, leading the Israel branch head to resign in May.
  • Nadella said the firm must earn social permission after unveiling a feature that reports employee activity to supervisors.