REDMOND, Wash. (Diya TV) — Microsoft CEO Satya Nadella says recent job cuts at the company have weighed heavily on him, as thousands of employees face layoffs in 2025. Nadella addressed the issue in a memo to employees, acknowledging the emotional toll the cuts have taken on the company.
“Before anything else, I want to speak to what’s been weighing heavily on me, and what I know many of you are thinking about: the recent job eliminations,” Nadella wrote in the company-wide message Thursday.
Microsoft has laid off over 15,000 employees this year. In early July, the company cut 9,000 jobs. These layoffs came just one week before Microsoft stock closed above $500 for the first time in history. The company employed 228,000 people as of June 2024. Microsoft has not released updated figures for 2025. However, Nadella stated that headcount is “basically flat,” suggesting that hires and departures are nearly balanced.
Microsoft employees have voiced frustration online about the layoffs. Some feel the company’s actions do not reflect its public values. One employee wrote on LinkedIn, “This has done so much damage to that loyalty because it has shown that Microsoft’s espoused values do not apply to business decisions at the macro level.”
Despite the criticism, Microsoft remains one of the most powerful names in tech. Its Azure cloud platform is growing fast. The company also holds major stakes in the AI space, working closely with OpenAI and relying on Nvidia’s powerful chips. Microsoft is not alone in reducing staff. The broader tech industry has eliminated more than 80,000 jobs in 2025 so far, according to reports.
Recruit Holdings, the parent company of Indeed and Glassdoor, recently announced it would cut 1,300 jobs from its HR tech segment. The company cited artificial intelligence as one of the reasons for the layoffs. This wave of tech layoffs has created anxiety across the sector. Companies are racing to adopt AI, while also cutting costs and shifting focus. These changes are happening quickly, and many workers are caught in the middle.
Nadella’s memo also focused on the company’s long-term vision. He reflected on Microsoft’s mission over the past decade: to empower every person and organization to achieve more. Now, he says, that mission must evolve.
“We must reimagine our mission for a new era,” Nadella wrote. “What does empowerment look like in the era of AI?”
He said the company is moving beyond building tools for specific tasks. Instead, Microsoft wants to create tools that let anyone build their solutions.
“That’s the shift we are driving — from a software factory to an intelligence engine empowering every person and organization to build whatever they need to achieve,” Nadella wrote.
Investors have responded positively to Microsoft’s efforts to restructure and focus on AI. The company’s stock has hit record highs, even as it cuts staff. Its market value now trails only Nvidia, the chipmaker powering much of today’s AI boom. Microsoft is set to report its fiscal fourth-quarter earnings on Wednesday. Analysts will be watching closely for updates on AI growth, Azure cloud revenue, and the company’s response to ongoing layoffs.
The tech industry is in the middle of a major shift. AI is reshaping everything, from how software is built to how companies make hiring decisions. While Microsoft leads in many areas, it also faces growing challenges. For thousands of Microsoft employees, the future remains uncertain. Nadella’s words may offer some reassurance, but for those who have lost their jobs, the impact is personal and immediate.
As Microsoft pushes forward, the company must balance innovation with the human cost of change.
