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Microsoft CEO addresses layoffs amid scrutiny

Satya Nadella defends layoffs while highlighting the company's ongoing financial success.

July 24, 2025 at 05:58 PM

Satya Nadella addressed employee layoffs while defending Microsoft's financial growth.

Microsoft faces backlash over layoffs amid success

Microsoft's CEO Satya Nadella has issued a statement in response to public criticism surrounding the company’s recent layoffs. After letting go of 9,000 employees, which totals to around 15,300 layoffs in 2025, Nadella expressed gratitude for their contributions. He stated that Microsoft’s overall workforce remains steady and emphasized the company's financial success. However, this success contrasts with the layoffs, prompting scrutiny. "By every objective measure, Microsoft is thriving," he mentioned, while acknowledging the challenges of maintaining employment in a rapidly changing industry. Despite the accomplishments, he did not dismiss the possibility of more layoffs in the future, hinting at ongoing uncertainties within the tech sector. Nadella captured the tests of loyalty and morale within the company’s culture, outlining a shift towards AI-driven initiatives as a priority for Microsoft's future.

Key Takeaways

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Microsoft laid off 9,000 workers, totaling 15,300 layoffs this year.

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Nadella thanks former employees for their contributions to the company's success.

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Company's overall headcount remains steady despite layoffs, which has drawn criticism.

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Nadella highlights Microsoft’s strong financial metrics, stating it is thriving.

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He acknowledges the challenges and uncertainties of the industry’s landscape.

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Further layoffs are possible, as indicated by Nadella's cautious tone.

"I want to express my sincere gratitude to those who have left."

Nadella acknowledges the contributions of laid-off employees, emphasizing their impact.

"By every objective measure, Microsoft is thriving."

Nadella defends the company's financial success while addressing layoffs.

"Boosting margins and increasing profits-per-employee is a short-term way to grow."

Corden comments on the potential negative effects of layoffs on employee morale and quality.

"I also want to acknowledge the uncertainty and seeming incongruence of the times we’re in."

Nadella highlights the unpredictable nature of the tech industry and its impact on employment.

Nadella's statement highlights a growing conflict in the tech industry where success can coincide with significant job cuts. This approach raises questions about the values underpinning corporate decisions. As firms look to boost profit margins, the long-term impact on employee morale and trust widens. Critics argue that while the company grows, the workforce feels alienated and vulnerable. Nadella's focus on innovation does not erase the emotional toll of layoffs, suggesting a precarious balance between financial success and corporate responsibility towards employees. His acknowledgment of uncertain times signals potential volatility that employees must navigate.