Microsoft Layoffs 2025: Satya Nadella Pens Emotional Memo

Photo: Reuters

The year 2025 has brought big changes to Microsoft. The company, one of the world’s biggest technology firms, has already cut more than 15,000 jobs this year. These layoffs have affected many teams and employees around the world. It’s a difficult time, not just for those who lost their jobs, but also for the people still working at the company.

In early July, Microsoft announced another round of layoffs—around 9,000 more roles were cut. This made headlines, and many employees began to feel anxious and uncertain about the future.

Even Satya Nadella, the CEO of Microsoft, seems to be feeling the emotional weight of these job losses. In a heartfelt message to his employees, Nadella spoke openly about the sadness and pressure caused by these difficult decisions.

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Nadella’s Emotional Memo to Employees

In his memo, which was shared on Thursday, Satya Nadella wrote honestly about the tough situation. “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,” he wrote.

These words came straight from the heart of a leader who knows his team is hurting. Nadella wanted his employees to understand that he doesn’t take these layoffs lightly.

Microsoft’s Workforce and Headcount

Back in June 2024, Microsoft had a global workforce of 2,28,000 people. While the exact current number after the 2025 layoffs hasn’t been shared, Nadella mentioned in his note that the overall size of the company’s workforce is still “basically flat.”

This means that although many jobs have been cut, Microsoft may also be hiring in other areas, especially in fields like artificial intelligence (AI) and cloud computing.

Stock Prices Rise Despite Layoffs

Interestingly, while the job cuts made people sad and uncertain, investors are feeling confident. Just one week after the July layoffs, Microsoft’s stock price went above $500 for the first time. This was a major milestone for the company.

Why did this happen? Because Microsoft is doing very well in some fast-growing areas. These include:

• Artificial Intelligence (AI)

• Cloud Computing

• Enterprise Software (like Office and Teams)

Microsoft has a strong reputation in these areas, and many people believe the company will continue to grow.

The Tough Truth About Tech Success

Satya Nadella didn’t try to hide the confusing reality. In his message, he said: “This is the enigma of success in an industry that has no franchise value. Progress isn’t linear. It’s dynamic, sometimes dissonant, and always demanding.”

What does that mean? Nadella is saying that even successful companies like Microsoft face hard times. The tech industry changes quickly. A company must adapt fast, or it will fall behind. Even while growing, it must sometimes make painful decisions, like cutting jobs, to stay strong.

Layoffs Across the Entire Tech Industry

Microsoft is not the only tech company cutting jobs in 2025. In fact, more than 80,000 jobs have been cut across the tech industry this year alone.

Another major company, Recruit Holdings—which owns job websites like Indeed and Glassdoor—announced it will cut 1,300 roles in its HR tech division. Their CEO blamed AI for changing the way companies operate.

This shows that many companies are using AI to become more efficient, which sometimes leads to fewer human jobs. It’s a big change happening all across the tech world.

AI: The Challenge and the Opportunity

It’s quite ironic, as AI is both causing job losses and creating new hope for companies. Microsoft is a leader in AI, and its cloud platform, Azure, is growing quickly.

This growth is partly because companies like OpenAI (the makers of ChatGPT) are buying lots of Nvidia chips through Azure to train powerful AI models.

At the same time, Microsoft’s older software products like Windows and Office are still very successful. These provide a strong base for the company to build its AI-powered future.

A New Vision for Microsoft’s Mission

In the same message, Nadella said that Microsoft’s mission is evolving. For over 10 years, the mission has been: “To empower every person and every organization on the planet to achieve more.”

Now, in the age of AI, Nadella says the mission needs to go further. He wrote: “What does empowerment look like in the era of AI? It’s not just about building tools for specific roles or tasks. It’s about building tools that empower everyone to create their own tools.”

This means Microsoft wants to give people the power to build their own AI tools, not just use the ones created for them. The company wants to move from being a software factory to an intelligence engine.

The Road Ahead: Nervous But Hopeful

Microsoft is getting ready to report its fiscal fourth-quarter earnings next week. Both Wall Street and Microsoft employees are watching closely.

The current feeling at Microsoft is a mix of:

• Nervous energy – because of the job cuts and changes.

• Bold ambition – because of the exciting future with AI.

As the company becomes leaner and more focused, many wonder how its people and its purpose will adapt. Microsoft is heading into a new era, and how well it handles this moment may shape its future for years to come.

2025 has been a year of deep change for Microsoft. The company has cut thousands of jobs, making it a painful time for many. But with new technologies like AI, Microsoft also sees a bright future. CEO Satya Nadella’s honest and emotional message shows he understands both the pain and the possibilities.

For Microsoft, this is not just a time of loss—it’s also a time of new beginnings. The big question now is how the company will balance technology, people, and purpose in the years ahead.