Microsoft has laid off over 15,000 people so far in 2025. The stress of the belt-tightening has gotten to CEO Satya Nadella.<\/p>\n
\u201cBefore anything else, I want to speak to what\u2019s been weighing heavily on me, and what I know many of you are thinking about: the recent job eliminations,\u201d Nadella wrote in a memo to employees Thursday.<\/p>\n
After Microsoft\u2019s latest labor reductions, investors pushed the stock\u2019s closing price above $500 for the first time on July 9. The company announced the layoffs of about 9,000 people a week earlier. Microsoft employed 228,000 people as of June 2024. It hasn\u2019t provided a new figure that takes into account its layoffs this year, but Nadella wrote that headcount is basically flat.<\/p>\n
\u201cThis is the enigma of success in an industry that has no franchise value,\u201d he wrote. \u201cProgress isn\u2019t linear. It\u2019s dynamic, sometimes dissonant, and always demanding. But it\u2019s also a new opportunity for us to shape, lead through, and have greater impact than ever before.\u201d<\/p>\n
The cuts at Microsoft are reflective of an overall trend across the tech industry, with over 80,000 positions eliminated to date in 2025, according to one count. Recruit Holdings announced earlier this month that it would lay off 1,300 people from its human resources technology segment that includes the Indeed and Glassdoor websites. The company\u2019s CEO pointed to artificial intelligence in a memo, Bloomberg reported.<\/p>\n
On social media in recent months, some Microsoft employees have become disheartened about the company\u2019s cutbacks, given its stature.<\/p>\n
\u201cI have loved working for this company, still do, but this has done so much damage to that loyalty because it has shown that Microsoft\u2019s espoused values do not apply to business decisions at the macro level,\u201d a person who lists themselves as a Microsoft directed on LinkedIn posted last week.<\/p>\n
Microsoft is the world\u2019s most valuable public company after Nvidia, whose chips have become a critical piece of the AI arms race. Microsoft\u2019s Windows and Office franchises remain dominant, and its Azure cloud services have seen faster growth in recent years as OpenAI and other companies rent out Nvidia graphics cards to run AI models.<\/p>\n
In the memo, Nadella touched on Microsoft\u2019s mission for the past 10 years, which has been to empower every person and every organization on the planet to achieve more, and how the rise of AI is changing it.<\/p>\n
\u201cWe must reimagine our mission for a new era,\u201d he wrote. \u201cWhat does empowerment look like in the era of AI? It\u2019s not just about building tools for specific roles or tasks. It\u2019s about building tools that empower everyone to create their own tools. That\u2019s the shift we are driving \u2014 from a software factory to an intelligence engine empowering every person and organization to build whatever they need to achieve.\u201d<\/p>\n<\/p>\n
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