Satya Nadella says company layoffs have been "weighing heavily" on him, which arrived despite the "objective measure" that "Microsoft is thriving" — and more layoffs could be on the way

Microsoft CEO Satya Nadella shared a public-facing statement discussing the recent layoffs at the company. His words come weeks after Microsoft laid off 9,000 people, which brought the total number of layoffs in 2025 to 15,300.

Nadella began his remarks by thanking those who have been laid off:

"I want to express my sincere gratitude to those who have left. Their contributions have shaped who we are as a company, helping build the foundation we stand on today. And for that, I am deeply grateful."

Layoffs are not rare at a company the size of Microsoft. Nadella highlighted that the overall headcount at Microsoft is "relatively unchanged."

As the tech industry shifts, Microsoft adjusts its staffing accordingly. Generally speaking, Microsoft's headcount increases over time, as illustrated by Statista.

But Microsoft has drawn criticism for laying off thousands of employees while the company is performing well financially and when measured by other metrics. Nadella mentioned this fact specifically:

"By every objective measure, Microsoft is thriving—our market performance, strategic positioning, and growth all point up and to the right. 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 recognized and rewarded at levels never seen before. And yet, at the same time, we’ve undergone layoffs."

The CEO attributes the situation to the "enigma of success in an industry that has no franchise value." Nadella did not delve into specifics.

Microsoft became a $4 trillion company earlier this year. That achievement, combined with other measures of success and Nadella's compensation, has drawn questions and criticism.

Our Senior Editor Jez Corden discussed the long-term impact of layoffs, stating that "Boosting margins and increasing profits-per-employee is a short-term way to grow into its valuation... the chilling effect its layoffs [have] on employee morale and product quality could do long-term harm."

More Microsoft layoffs could be on the way

Nadella did not rule out future layoffs in his statement. In fact, he spoke about uncertainty.

"I also want to acknowledge the uncertainty and seeming incongruence of the times we’re in," said the CEO.

While that’s not an announcement of further layoffs, the memo also doesn’t include any assurance that layoffs will be limited in the near future.

Following his remarks on the layoffs, Nadella explained the mission and priorities of the company.

"We must reimagine our mission for a new era. 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. That’s the shift we are driving—from a software factory to an intelligence engine empowering every person and organization to build whatever they need to achieve."

He later outlined security, quality, and AI as Microsoft's biggest priorities.

When discussing the culture of Microsoft, Nadella pointed to growth and "pride in our craft." He also said that employees have a chance to "derive meaning from the work we do with Microsoft’s mission to empower the world."

What are your thoughts and feelings on Nadella's statement? If you were a Microsoft employee, would you feel reassured? Let us know in the comments below.