Microsoft chief executive Satya Nadella has sought to justify the software maker’s latest workforce reductions, describing the dismissal of roughly 9,000 employees earlier this month as “the enigma of success” in an internal memo circulated this week. Despite recording more than $75 billion in profit over the past three quarters and planning about $80 billion of AI-related capital spending this year, Nadella wrote that the cuts were among the most difficult decisions he has made, adding that the transition to an AI-centric business model “might feel messy at times.” He told staff that headcount remains largely unchanged overall, but roles are being redefined as Microsoft accelerates investments in security, quality and artificial intelligence. Intel Corp. is undergoing a deeper retrenchment. Shares of the chipmaker fell more than 8% in pre-market trading on Friday after second-quarter results showed revenue of $12.9 billion and a loss of 10 cents a share, and chief executive Lip-Bu Tan outlined a turnaround plan centred on cost discipline. Intel said it will cut about 15% of its workforce, targeting roughly 75,000 employees by the end of 2025, cancel factory projects in Germany and Poland and slow construction of a new complex in Ohio. Tan acknowledged that Intel had “invested too much, too soon—without adequate demand,” and pledged a fundamentally different approach to the foundry business. The parallel restructuring moves by two of the world’s largest technology companies underscore the sector’s drive to reallocate resources toward artificial intelligence even as earnings remain robust. Microsoft faces internal unease over job losses in the midst of record profits, while the market’s reaction to Intel’s cost-cutting shows lingering investor doubts about its ability to regain technological leadership while trimming billions in spending.