Interested in how he is positioning Microsoft for AI-driven disruption, especially in light of Microsoft laying off around 15,000 people this year while posting record earnings, Om Malik took a deep look at Satya Nadella’s recent memo to Microsoft, which frames the layoffs as inevitable — and argues for embracing that pain early.

For years, the sector has been generous to its employees, offering unheard-of perks and placing a premium on skills such as software development. AI, however, inverts that relationship.

Satya’s memo outlines a zero-sum vision of AI disruption, one where companies have a license to increase profitability without so many of those messy human costs. I’m a fan of Satya and currently hold Microsoft stock, but I’m no fan of this approach to the near future. I may be naïve, but I remain convinced that there can be a positive-sum version of how this plays out.