'Transformation is messy': Satya Nadella breaks silence on Microsoft layoffs
What's the story
Microsoft CEO Satya Nadella has addressed the recent layoffs that affected nearly 9,000 employees. In a memo to his team, he acknowledged the emotional impact of such decisions and called them one of the toughest parts of leadership. "These decisions affect people we've worked alongside, learned from, and shared countless moments with," wrote Nadella in his note.
Future cuts
'Microsoft is thriving...yet we've undergone layoffs'
Despite the recent job cuts, Microsoft's headcount remains "relatively unchanged," Nadella said in his memo. "By every objective measure, Microsoft is thriving... and yet, at the same time, we've undergone layoffs," he noted. "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."
AI focus
AI is the focus for Microsoft
In his memo, Nadella reiterated Microsoft's focus on artificial intelligence (AI). He asked employees to envision a world where every person could summon an analyst or coding agent through AI. This vision aligns with Microsoft's recent investments, including its multi-billion dollar partnership with OpenAI. He also outlined three business priorities: security, quality, and AI transformation.
Employee reassurance
Nadella reassures employees amid culture of fear
Nadella sought to reassure employees amid a culture of fear due to continuous layoffs. He urged them to keep the "growth mindset" culture in mind as the AI platform shift reshapes Microsoft's products and business models. "It might feel messy at times, but transformation always is," said Nadella, adding that teams are reorganizing, scopes are expanding and new opportunities are everywhere.