Microsoft Satya Nadella is “very bullish” on Asia, China and India.

Microsoft CEO on slowing growth and whether there will be more job cuts

The manager of Microsoft says he’s bullish on Asia, particularly China and India, as Microsoft plans to build more data centers around the world.

“Absolutely. We’re very, very optimistic about what’s happening in Asia,” Microsoft chairman and CEO Satya Nadella said in an interview with CNBC’s Tanvir Gill on Thursday, adding that Microsoft is investing in at least 11 regions.

“We feel absolutely committed to all of these countries, including China. Today we mainly work to support multinational companies operating in China and multinational companies outside of China.”

He added that India has been a “massive growth market” after the outbreak of the pandemic.

“Microsoft’s presence in India was mainly about multinational companies operating in India. But right now that’s completely changed,” he said.

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“It’s the other way around where these companies that are innovating in India, whether it’s the big big conglomerates or the new startups, everyone is using [artificial intelligence] Cloud technology to innovate and create services that are obviously popular in India and elsewhere,” he told CNBC.

Microsoft previously told Indian media outlet Economic Times that there is huge demand in India to develop new native cloud applications.

tech layoffs

Microsoft announced a round of layoffs in October that will affect less than 1% of its employees.

Asked if there will be more job cuts as growth continues to slow, the CEO said, “We’re very committed to making sure that our operating expenses and revenue growth are somehow compatible because, after all, we’re a company that’s awesome must be conducted.”

US tech giants have laid off workers on a massive scale, but Nadella has said he is optimistic about the job market there.

Meta has shed 11,000 employees, Snap is laying off more than 1,000 employees, while Twitter cut about half of its workforce last month after Elon Musk took control of the social media giant.

“The current job markets are much more resilient,” Nadella said, adding that most businesses, from energy companies to banks and retailers, need software engineers.

He added that no industry is immune to macroeconomic issues. “So everyone has to manage costs and demand properly,” he said.

“One of the fascinating things about the US is the amount of capital that is being invested,” he said, adding that new industrial infrastructure such as manufacturing plants, power plants and battery factories is being built.

“I’m much more focused on watching what’s happening in terms of new growth in the United States. So I’m very, very optimistic about the US and the world.”

Nadella replaced billionaire Steve Ballmer as Microsoft CEO in 2014. Nadella was previously executive vice president of Microsoft’s cloud and enterprise group.

Microsoft shares were at $241.73 in after-hours trading. Shares are down 27.8% year-to-date.

— This is an evolving story. Please check back for updates.

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