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=== Operational Changes: Adapting to Industry Demands === Microsoft implemented significant management changes, organisational restructuring, and business model adaptations in 2022. Notable leadership shifts included the departure of several executives linked to misconduct allegations, such as Alex Kipman and Tom Keane <ref>{{cite web |url=https://www.businessinsider.com/microsoft-2022-most-significant-exec-departures-and-hires-2022-12 |quote=Microsoft's most significant executive departures in 2022 were linked to misconduct allegations. }}</ref>. The company added 40,000 employees—a 22% increase over the previous year <ref>{{cite web |url=https://www.geekwire.com/2023/full-memo-microsoft-to-cut-10k-jobs-about-5-of-workforce-and-take-1-2b-restructuring-charge/ |quote=Microsoft added 40,000 employees in its 2022 fiscal year, a 22% increase over the prior year. }}</ref>—and invested heavily in employee compensation, including merit-based salary increases and stock awards <ref>{{cite web |url=https://www.microsoft.com/investor/reports/ar22/index.html |quote=Microsoft announced a significant investment in employee compensation for fiscal year 2022. }}</ref>. Organisational restructuring aimed to break down product silos and foster collaboration across its growing workforce. On the business model front, Microsoft doubled down on its cloud computing and AI ambitions, completing the acquisition of Nuance Communications in March 2022 <ref>{{cite web |url=https://www.microsoft.com/investor/reports/ar22/index.html |quote=Microsoft completed the acquisition of Nuance Communications in March 2022. }}</ref> and announcing the proposed acquisition of Activision Blizzard in January <ref>{{cite web |url=https://blogs.microsoft.com/on-the-issues/2023/08/21/microsoft-activision-restructure-acquisition/ |quote=Microsoft announced the proposed acquisition of Activision Blizzard in January 2022 to advance its gaming goals. }}</ref>. These moves reinforced Microsoft’s position as a leader in cloud and AI while diversifying its revenue streams.
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