Regardless of Microsoft’s place because the No. 2 most precious firm on the earth, behind Nvidia, with a market worth of $3.8 trillion, the tech big has laid off greater than 15,000 individuals this 12 months.
In a memo to employees on Thursday morning, launched publicly on Microsoft’s company weblog, Microsoft CEO Satya Nadella addressed the latest job cuts, calling the choices a few of “essentially the most tough” that he needed to make.
“Earlier than anything, I wish to communicate to what’s been weighing closely on me, and what I do know lots of you’re fascinated with: the latest job eliminations,” Nadella wrote.
Associated: Microsoft Is Laying Off Extra Staff as AI Continues to Trim Workforces
Nadella acknowledged “the uncertainty and seeming incongruence of the occasions we’re in” however famous that Microsoft is “thriving,” with distinctive market efficiency, technique, and progress. For instance, Microsoft’s inventory value rose to an all-time excessive, hitting a closing value above $500 for the primary time earlier this month.
Nadella additionally said that the corporate is investing extra in AI infrastructure than ever earlier than, pouring over $80 billion into AI within the fiscal 12 months that resulted in June.
“Microsoft is being acknowledged and rewarded at ranges by no means seen earlier than,” Nadella wrote. “And but, on the identical time, we have undergone layoffs. That is the enigma of success in an trade that has no franchise worth.”
Nadella defined the disconnect between thriving financials and layoffs by stating that “progress is not linear” and that it’s “typically dissonant, and at all times demanding.” He famous that headcount at Microsoft “is comparatively unchanged” as the corporate continues to rent new staff, and he would not promise that there will not be extra layoffs sooner or later. Microsoft reported using 228,000 staff as of June 2024.
Microsoft CEO Satya Nadella. Photographer: Chona Kasinger/Bloomberg through Getty Photos
Within the memo, Nadella additionally redefined Microsoft’s mission from a “software program manufacturing facility” to an “intelligence engine.” He stated that the corporate’s future alternative was to carry AI to all eight billion individuals on the planet.
Associated: Microsoft Government Says Utilizing AI Has Saved $500 Million in Productiveness Prices, because the Firm Conducts Mass Layoffs
In the meantime, Microsoft has made big income not too long ago, with its web earnings equaling about $75 billion throughout its final three fiscal quarters. For the primary three months of 2025, the corporate’s revenue rose to $25.8 billion, up 18% from the earlier 12 months, beating Wall Avenue expectations.
Microsoft inventory is up 22% year-to-date.
Be a part of high CEOs, founders and operators on the Degree Up convention to unlock methods for scaling your online business, boosting income and constructing sustainable success.
Regardless of Microsoft’s place because the No. 2 most precious firm on the earth, behind Nvidia, with a market worth of $3.8 trillion, the tech big has laid off greater than 15,000 individuals this 12 months.
In a memo to employees on Thursday morning, launched publicly on Microsoft’s company weblog, Microsoft CEO Satya Nadella addressed the latest job cuts, calling the choices a few of “essentially the most tough” that he needed to make.
“Earlier than anything, I wish to communicate to what’s been weighing closely on me, and what I do know lots of you’re fascinated with: the latest job eliminations,” Nadella wrote.
The remainder of this text is locked.
Be a part of Entrepreneur+ at the moment for entry.
