Microsoft’s CEO, Satya Nadella, has acknowledged the emotional toll that recent layoffs, which affected 10,000 workers, had on current and former employees. This recognition is perhaps more surprising, coming amid a crisis within the tech giant. In a memo sent to Microsoft employees on Thursday, Nadella discussed the company’s decision to lay off over 15,000 employees in 2025, a move that has sparked discontent and disheartenment among the workforce.
I note that Microsoft is doing some pretty serious belt-tightening themselves. These layoffs are a necessary reaction to new market demands and the growing influence of artificial intelligence. Nadella highlighted the need to reframe the company’s mission. For the last 10 years, that mission has been to help every individual and every organization on the planet to do great things. He stated, “We must reimagine our mission for a new era,” highlighting the transformative impact of AI on the company’s objectives.
The road hasn’t been easy for Microsoft, despite its dramatic push towards an AI-driven future. Employee morale has allegedly suffered due to these changes. In addition, according to Business Insider, some employees feel that the company’s recent actions have gone against its founding principles. A LinkedIn user who identifies as a Microsoft director remarked, “I have loved working for this company, still do, but this has done so much damage to that loyalty because it has shown that Microsoft’s espoused values do not apply to business decisions at the macro level.”
Nadella’s memo responded to these feelings head-on, recognizing the anxiety that always comes with layoffs. He began with, “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.” His honest admission of the emotional cost taps into a deepening anxiety pervasive among workers as they find themselves facing an unknown future.
The ascendance of AI leaves Microsoft no choice to reset its big, ambitious goals. It adjusts what empowerment means internally to the organization. Nadella elaborated on this shift, saying, “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.”
Microsoft is seizing the opportunity to lead in a rapidly changing technological landscape. It’s on the company’s leadership to truly account for the practical and emotional impact of their decisions on short-term employees. Those challenges are going to need solutions that balance a spirit of bold innovation with keeping employees’ trust and morale intact.