Are more job cuts coming? Is he feeling guilty about… or…: Microsoft reportedly employees react to CEO Satya Nadella’s memo

Microsoft employees are reportedly questioning CEO Satya Nadella‘s motive behind a memo attempting to explain why the tech giant has eliminated thousands of jobs while generating massive profits and investing $80 billion in AI infrastructure. According to a report in Business Insider, employee reactions reportedly range from suspicion about impending job cuts to criticism of what is being termed as the company’s tone-deaf messaging.“As we begin a new fiscal year, I’ve been reflecting on the road we’ve traveled together and the path ahead,” Nadella wrote in Thursday’s memo. “Before anything else, I want to speak to what’s been weighing heavily on me, and what I know many of you are thinking about: the recent job eliminations.”

Workers speculate on CEO’s memo on layoffs explanation

Inside Microsoft, the report claimed, employees are questioning whether the memo signals more job cuts ahead, reflects guilt over strong earnings, or serves as messaging to Wall Street ahead of next week’s earnings report. Microsoft has cut approximately 15,000 employees this year while maintaining roughly $75 billion in profit over three fiscal quarters.“These decisions are among the most difficult we have to make. They affect people we’ve worked alongside, learned from, and shared countless moments with—our colleagues, teammates, and friends,” Nadella acknowledged, expressing gratitude to departed employees whose “contributions have shaped who we are as a company.”One Microsoft employee told Business Insider they couldn’t determine if Nadella was “trying to mend feelings or prepare people for more pain.” Another reportedly criticised the company for prioritising key performance indicators over people, while a third called the memo tone-deaf, comparing Microsoft to a coal mine focused solely on extracting more resources.

Staff criticise ‘enigma of success’ rationale as Microsoft stock hits records

Nadella described the situation as an “enigma of success in an industry that has no franchise value,” explaining that “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 recognised and rewarded at levels never seen before. And yet, at the same time, we’ve undergone layoffs,” he wrote.The report said that on employee message boards, workers posted parodies of the memo and criticised its rationale. Some speculated the letter was crafted for Wall Street, reminding investors that layoffs continue despite strong business performance. Microsoft’s stock has risen 21% this year and hit records in July.“The success we want to achieve will be defined by our ability to go through this difficult process of ‘unlearning’ and ‘learning,'” Nadella concluded, expressing confidence that Microsoft “will once again find the resolve, courage, and clarity to deliver on our mission in this new paradigm.”