Satya Nadella Reflects on the Emotional Impact of Job Cuts at Microsoft

In 2025, Microsoft has made significant workforce reductions, laying off over 15,000 employees. This wave of job cuts has taken a toll on CEO Satya Nadella, who acknowledged the emotional weight of these decisions in a recent memo to staff.

He remarked, “Before anything else, I want to speak to what’s been weighing heavily on me… the recent job eliminations.”

The layoffs come amid an overall trend in the tech industry, where more than 80,000 jobs have been eliminated this year alone. Microsoft’s decision to cut around 9,000 positions just before Nadella’s memo pushed investors to drive the company’s stock above $500 for the first time on July 9.

As of June 2024, Microsoft employed approximately 228,000 people, but a new headcount has yet to be disclosed. Nadella noted that the company’s workforce is essentially stable despite the layoffs.

The situation at Microsoft has generated discontent among employees, particularly concerning the gap between the company’s values and business decisions. One LinkedIn user expressed feeling disheartened, saying, “This has done so much damage to that loyalty because it has shown that Microsoft’s espoused values do not apply.”

Despite these challenges, Microsoft remains a powerhouse in the tech landscape, particularly with the rise of artificial intelligence.

Nadella emphasized the need to redefine the company’s mission in this new era, highlighting a shift from merely providing software to empowering individuals to create their own tools. He stated, “We must reimagine our mission for a new era… It’s about building tools that empower everyone to create their own tools.” This vision aims to transform Microsoft into an intelligence engine that supports the ambitions of every person and organization.