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

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.