- Microsoft PDG says
- Satya Nadella compares this period in the early 1990s, when PCs were democratized
- Microsoft should announce quarterly income next week, so more cuts could arrive
In a business level to workers, Microsoft CEO Satya Nadella said that the recent “eliminations” of the company had “weighed heavily” on him.
Nadella explained that he “recognizes[s] The apparent uncertainty and incongruence of the moments in which we are “- even if Microsoft is” prosperous “and the workforce remains largely unchanged, several thousands have always lost their job, largely due to the improvements of efficiency induced by AI.
To justify the labor changes, Nadella explained that roles are redefined due to the evolution of customer needs and the way users do work.
Satya Nadella understands that workers are worried about their work
The news comes while business capital spending continues to increase – Microsoft plans to spend around $ 80 billion for AI infrastructure only in 2025 – and yet layoffs can only save a small part of these expenses.
However, the recent cuts have triggered generalized dissatisfaction with employees, fear and abolition of morale, much fearing that the company would return to “ the old Microsoft ” where internal rivalries, poor communication and insecurity of employment make it a unpleasant company to work.
About 9,000 Microsoft workers lost their jobs in July 2025, with around 6,000 people in May and several hundred in other smaller adjustments.
Admiring the current situation in the early 1990s when PCs and productivity software became democratized, Nadella noted: “It could sometimes be disorderly, but the transformation is still. The teams are reorganized. The expanses are developing. New opportunities are everywhere.”
The CEO has also expressed that progress is not always linear, and in this case, it could be dynamic, dissonant and demanding.
Nadella also undertook to respond to the concerns of employees at the company’s town hall meeting, as well as to share more details in calling the results, scheduled for July 30.
