Microsoft CEO Satya Nadella recently shared a thoughtful message with employees following the company’s decision to reduce its global workforce. Over 15,000 employees have been laid off in 2025, including 9,000 in July alone, as Microsoft intensifies its focus on artificial intelligence and operational efficiency.
Nadella acknowledged the emotional impact of the layoffs, calling them “some of the hardest decisions” the company has faced. While Microsoft continues to report strong financials, bringing in nearly $75 billion in recent profits, he emphasized that the cuts were a strategic shift rather than a reflection of failure.
In his message, Nadella expressed gratitude to departing employees and emphasized the need for current staff to adopt a growth mindset. He explained that the layoffs are part of Microsoft’s broader mission to become more agile and competitive in the AI space.
“We are entering a period where unlearning and relearning will define our ability to lead,” Nadella stated. He urged the team to stay grounded in empathy and innovation as the company aligns its structure with evolving market demands.
Outlook and Culture Reboot:
Nadella encouraged Microsoft employees to remain focused on their shared mission, reinforcing the importance of resilience during transitions. He emphasized that building a great company isn’t just about numbers, it’s about people, purpose, and adaptability. Despite recent challenges, Microsoft is positioning itself as a global AI leader by committing to innovation, refining its workforce, and supporting its teams through ongoing change.
Key Highlights:
- Layoffs in 2025: Over 15,000 roles cut, including major reductions in July.
- Financial Health: Microsoft remains highly profitable, with $75B+ in earnings.
- Leadership Message: Emphasizes learning, cultural clarity, and compassion.
- AI Investment: $80B committed to strengthening AI and cloud infrastructure.
- Internal Shift: Renewed focus on agility, mission alignment, and tech innovation.
