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Microsoft CEO Satya Nadella told "Axios on HBO" that he is not focused on cutting costs in the face of the coronavirus crisis, but instead aiming to meet "new demand" for Microsoft Teams and other Office applications as more employees work from home.

Why it matters: Tech companies like Microsoft are taking on central new roles in keeping government, business and education up and running as offices shut down to reduce the spread of the coronavirus.

What's happening: Microsoft warned in February that earnings would fall short of expectations due to the virus, but that related to the supply of PCs coming out of China, not the broader impact of the pandemic.

  • Asked if he was contemplating layoffs or slowing in investments in certain areas, Nadella said that's not where he is putting his energy.
  • "So for now, what I'm focused on is ... what I would call new demand," Nadella said. "I don't think, you know, one month ago I would have thought of 'work from home' as a complete new scenario with the type of spikes we have today. Overall activation of Microsoft 365 is increasing significantly." (That's a mix of new paid users and free trials, though.)

While the spike in demand has led to some challenges — Microsoft Teams had an outage in Europe last week — Nadella said that, overall, the shift from company-based servers to the cloud has prepared the economy to handle a large population of employees working from home.

"I think we are so much better equipped today," Nadella said. "But clearly the spikes we are seeing are pretty unprecedented, right? This was not a growth that we had looked at and planned in any spreadsheet or any model we had even a month ago."

Yes, but: It's not like a near shutdown of the economy isn't going to hurt other areas.

  • "When you have large swaths of our consumer economy quarantined, there will be an impact," Nadella said.
  • "We are clearly going to have some demand shock," Nadella said. "But Microsoft is a very diversified business, and that's been one of our strengths through the previous downturns. ... We have a good set of businesses with good business models."

The big picture: With a huge concentration of employees in Washington state — and a presence in China — Microsoft was hit early by the epidemic and acted early, encouraging its employees to work from home and promising to pay hourly workers even if their services were not needed as full-time employees telecommute.

Meanwhile: Nadella said he is still tapping Bill Gates' expertise, even as the Microsoft co-founder announced last week he would step down from the company's board.

  • "Bill has been very engaged in helping us understand even some of the core data and science and also the response side of it," Nadella said, adding, "Bill and his guidance will continue independent of his participation in our board. He will always be our founder, and he'll always be somebody that I'll count on his advice in times like this and beyond."

Go deeper

Updated 45 mins ago - Sports

In photos: Tokyo Olympics day 6 highlights

An underwater view of swimmers including Team USA's Caeleb Dressel (R) in the final of the Olympic Tokyo Games men's 100m freestyle on July 29. Photo: François-Xavier Marit/AFP via Getty Images

There's been plenty of Olympics drama on day six of the Tokyo Games Thursday — notably China's women's swimming team beating the U.S. and Australia in the record-setting 4x200-meter freestyle relay.

The big picture: Katie Ledecky helped the U.S. win silver, which also beat the previous world record smashed by China's team. Team USA grabbed two more swimming gold medals, when Caeleb Dressel won the men's 100m freestyle and Bobby Finke triumphed in the first men's Olympic 800m freestyle.

Updated 2 hours ago - Sports

Olympics dashboard

Team USA's Simone Biles during the women's team final on day four of the Tokyo 2020 Olympic Games at Ariake Gymnastics Centre on Tuesday in Japan. Photo: Fred Lee/Getty Images

🤸🏾‍♀️: Simone Biles reacts to "love and support" after withdrawing from all-around gymnastics and team finals, citing her mental health

🏊‍♂️: Caeleb Dressel wins gold in men's 100m freestyle —Bobby Finke wins gold in first men's Olympic 800m freestyle

📷: In photos: Tokyo Olympics day 6 highlights

🗓: The Olympic events to watch today

🎾: "This one sucks more than the others," Naomi Osaka says on upset loss

🏃‍: Female Olympians push back against double standard in uniforms

Go deeper: Full Axios coverage - Medal tracker

Updated 3 hours ago - Sports

China wins Olympic gold in women's 4x200m freestyle relay, sets world record

Junxuan Yang, Muhan Tang, Yufei Zhang and Bingjie Li of Team China react after winning the gold medal in the women's 4 x 200m freestyle relay final. Photo: Al Bello/Getty Images

China grabbed Olympic gold in the women's 4x200m freestyle relay, in a surprise record win in Tokyo Thursday.

The big picture: Katie Ledecky made up time as Team USA's final swimmer to help the U.S. take silver. Australia, which was the heavy favorite, won the bronze. All three teams finished ahead of the previous world record pace.