Satya Nadella defends company layoffs despite the fact that “By every objective measure, Microsoft is thriving” — and more layoffs could be on the way

by

Recently, Satya Nadella, CEO of Microsoft, made a public statement addressing the recent job cuts at the company. This announcement comes a few weeks after Microsoft let go of approximately 9,000 employees, bringing the total number of layoffs in 2025 to 15,300 so far.

Nadella began his remarks by thanking those who have been laid off:

I’d like to extend heartfelt thanks to those who have moved on. The impact of their work is evident in our company’s identity, as they played a crucial role in laying the groundwork we stand upon today. For this reason, I am profoundly appreciative.

At a large corporation like Microsoft, layoffs aren’t unusual events. However, Nadella emphasized that the total number of employees at Microsoft has remained relatively stable.

In the ever-evolving landscape of technology, I find myself growing alongside Microsoft. Over the years, it’s clear that Microsoft has been expanding its workforce, a trend that Statista’s data beautifully illustrates.

However, Microsoft has faced backlash due to its decision to let go of a large number of employees despite the company’s strong financial performance and positive evaluations based on various key indicators. This point was explicitly highlighted by Nadella.

Despite all indicators pointing towards growth and success for Microsoft – with outstanding market performance, strong strategic positioning, and continuous expansion – we’ve also experienced workforce reductions in certain areas. This paradoxical situation involves us making significant investments in capital expenditure than ever before, maintaining a relatively stable overall headcount, and recognizing our employees’ talents and skills more generously than ever, all while undergoing layoffs.

Nadella, the CEO, attributes the current scenario to the “mystery surrounding achieving success in an industry where there’s no inherent brand value.” He didn’t provide specific details about it.

Earlier this year, Microsoft reached a valuation of $4 trillion, an impressive milestone that, along with other indicators of success and Nadella’s salary, has sparked debates and criticism.

In simpler terms, Jez Corden, our Senior Editor, pointed out that temporarily improving profitability by reducing staff can lead to higher profits per employee. However, he warned that these layoffs may negatively impact employee motivation and the overall quality of products in the long run, potentially causing significant damage.

More Microsoft layoffs could be on the way

Nadella did not rule out future layoffs in his statement. In fact, he spoke about uncertainty.

The CEO mentioned that he recognizes the confusing and unpredictable nature of our current times.

As I peruse this document, it’s clear there’s no good news about potential job security on the horizon. There’s no mention here of any restrictions on possible layoffs in the coming days.

Following his remarks on the layoffs, Nadella explained the mission and priorities of the company.

Let’s rethink our purpose in light of this new technological age, particularly AI. Empowerment isn’t merely constructing tools for specific jobs or responsibilities; it’s about creating tools that enable everyone to develop their own tools. This is the change we are promoting – from a software factory to an intelligent platform empowering every individual and organization to create whatever they require to accomplish their goals.

He later outlined security, quality, and AI as Microsoft’s biggest priorities.

In my role as a researcher, I’d rephrase it like this: As I delve into the cultural ethos of Microsoft, Nadella emphasizes growth and takes pride in our craft. He also encourages employees to find personal significance in their work, as Microsoft strives to empower the global community with its mission.

Read More

2025-07-24 21:09