Microsoft CEO Nadella addresses employee layoffs, says job cuts weigh heavily on him.

Microsoft CEO Satya Nadella has acknowledged that job cuts, which have resulted in over 15,000 layoffs so far in 2025, have weighed heavily on him. The cuts are part of a broader trend in the tech industry, with over 80,000 positions eliminated this year. Nadella has also emphasized the need for the company to reimagine its mission in the era of AI, shifting from a software factory to an intelligence engine that empowers everyone to build their own tools.

Title: Microsoft's Job Cuts Amid Record Profits and AI Investments

Microsoft CEO Satya Nadella has expressed deep regret over the company's recent job cuts, which have totaled over 15,000 employees so far in 2025 [1]. This wave of layoffs comes amidst a broader trend in the tech industry, with over 80,000 positions eliminated this year [1]. Nadella's memo, published on the company's corporate blog, acknowledged the "uncertainty and seeming incongruence" of Microsoft's current situation, noting that while the company is thriving financially, it has made thousands of job cuts [1].

Nadella highlighted the paradoxical nature of Microsoft's success, stating, "Progress isn’t linear. It’s dynamic, sometimes dissonant, and always demanding. But it’s also a new opportunity for us to shape, lead through, and have greater impact than ever before" [1]. The CEO emphasized that the company's mission is evolving from a "software factory" to an "intelligence engine" that empowers everyone to create their own AI-powered tools [1].

The memo comes as Microsoft grapples with internal discontent and questions from employees. Some employees have criticized the company's handling of layoffs, suggesting that it has eroded the more compassionate environment fostered under Nadella's leadership [1]. The company's aggressive job cuts have fueled broader concerns about its workplace culture, with some employees and former staffers expressing concern that they are witnessing a return to the "old Microsoft" [1].

Despite the layoffs, Microsoft has reported strong financial results, with net income totaling roughly $75 billion over the latest three fiscal quarters [2]. The company is also investing heavily in AI infrastructure, with an estimated $80 billion spent over the past year [2]. Microsoft's stock has performed well this year, up 21% and hitting a record earlier in July [2].

Nadella's memo underscores the company's commitment to reimagining its mission in the era of AI. He called this dual mandate of maintaining successful businesses while creating new categories and business models "inherently hard" and expressed confidence that Microsoft can achieve it [1]. The CEO emphasized that the company's success will be defined by its ability to go through this difficult process of "unlearning" and "learning" [1].

Microsoft's next earnings report is scheduled for next week, and Nadella has promised to share more details and address employee questions at an upcoming town hall meeting [1]. The company's "Elevate" initiative, which aims to help millions of people worldwide gain new skills for the AI era, further underscores Microsoft's commitment to adapting to technological change [1].

References:
[1] https://www.geekwire.com/2025/in-new-memo-microsoft-ceo-addresses-enigma-of-layoffs-amid-record-profits-and-ai-investments/
[2] https://www.businessinsider.com/microsoft-ceo-memo-job-cuts-profit-enigma-of-success-2025-7