Microsoft CEO Satya Nadella recently addressed the company’s layoffs of over 15,000 employees in 2025, stating in a memo to staff that the cuts have been “weighing heavily” on him. He described the layoffs as part of a strategic shift driven by the rise of AI, emphasizing that they were not performance-related but necessary to realign Microsoft’s priorities in a dynamic market. The layoffs, which included about 6,000 jobs in May and another 9,000 in July, affected various teams, including engineering and gaming, as the company focuses on AI infrastructure and reducing managerial layers. Nadella noted the emotional toll but framed the cuts as part of an industry trend, with over 80,000 tech jobs eliminated in 2025. Despite the reductions, Microsoft’s stock hit a record high above $500 on July 9, reflecting investor approval. Nadella also highlighted opportunities for Microsoft to lead in AI, aiming to address real-world challenges like healthcare and education inefficiencies.
