Microsoft has eliminated thousands of jobs this year, shedding nearly 2,000 underperformers, despite generating huge profits and spending billions on AI.
CEO Satya Nadella recently sent a note to employees explaining why the company is cutting jobs while thriving financially. He acknowledged that the layoffs are difficult and affect people he has worked alongside, but emphasized that progress isn’t linear and that success requires embracing change.
Nadella outlined Microsoft’s mission to empower everyone to create their own tools using AI. The company will focus on three business priorities: security, quality, and AI transformation. To deliver on this mission, Nadella emphasized the importance of a growth mindset, humility, and empathy in driving innovation and progress.
The CEO also referenced his previous note from 2023, where he was criticized for praising the company’s successes without acknowledging tough moves. This time, Nadella took a more balanced approach, expressing gratitude to departing employees and re-grounding himself in Microsoft’s mission, priorities, and culture.
As Microsoft looks to shape its future through AI, Nadella is confident that the company can deliver on its mission. He encouraged employees to stay focused on their work, learn from each other, and drive innovation with humility and empathy.
Source: https://www.businessinsider.com/microsoft-ceo-memo-job-cuts-profit-enigma-of-success-2025-7