‘Transformation is messy…’ says Microsoft CEO Satya Nadella as he breaks silence on 9,000 job cuts

Satya Nadella

Microsoft CEO Satya Nadella has finally broken his silence over the company’s recent round of layoffs that saw up to 9,000 employees lose their jobs earlier this month. In a memo to employees, Nadella acknowledged the emotional toll of the decision, calling it one of the most difficult aspects of leadership.

“These decisions affect people we’ve worked alongside, learned from, and shared countless moments with,” Nadella wrote, recognising the impact on teams and morale.

Notably, Nadella did not rule out more job cuts. Despite the layoffs, Microsoft’s headcount remains “relatively unchanged,” he said, highlighting the paradox of a company that is both thriving and shrinking simultaneously. “By every objective measure, Microsoft is thriving… and yet, at the same time, we’ve undergone layoffs,” he noted.

This juxtaposition, he explained, reflects the realities of an industry with no “franchise value” — where progress is messy, nonlinear, and often dissonant. It’s a line that may resonate with tech insiders, but it offers little certainty to employees bracing for more change.

Nadella also used the memo to reaffirm Microsoft’s big-picture focus: AI. He urged staff to imagine a world where every human has access to a personal analyst or coding agent, powered by artificial intelligence. It’s a vision that aligns closely with Microsoft’s recent bets, including its multi-billion dollar partnership with OpenAI.

Three business priorities were laid out: security, quality, and AI transformation. After several high-profile security lapses, Nadella said the company is doubling down on fundamentals. “Security and quality are non-negotiable,” he wrote.

On the cultural front, he tried to reassure staff facing disruption, encouraging a continued belief in Microsoft’s “growth mindset.” Transformation is inherently messy , said Nadella, as his message was that teams will be reshuffled, scopes will expand, and opportunities will emerge.