Microsoft CEO Satya Nadella has addressed the recent wave of job cuts at the tech giant, even as the company reports soaring profits, record stock prices, and unprecedented investment in artificial intelligence (AI). In a memo sent to employees on Thursday, Nadella acknowledged the concerns around the layoffs, saying, “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.”
So far in 2025, Microsoft has laid off over 15,000 employees. In addition, around 2,000 staff who were deemed underperformers have also been let go.
This comes at a time when Microsoft is enjoying strong financial performance. The company has reported approximately $75 billion in net income over the past three fiscal quarters, according to Business Insider. Meanwhile, it is investing $80 billion in AI infrastructure, and its shares recently closed above $500 for the first time on 9 July — a record high.
Nadella attempted to explain the reasoning behind the job cuts, despite the company’s apparent success. “By every objective measure, Microsoft is thriving—our market performance, strategic positioning, and growth all point up and to the right,” he wrote.
“We’re investing more in CapEx than ever before. Our overall headcount is relatively unchanged, and some of the talent and expertise in our industry and at Microsoft is being recognised and