- Microsoft CEO says AI-induced job cuts have been “weighing vigorously” on him
- Satya Nadella compares this period to the early 1990s where PCs were democratized
- Microsoft is ready to advertise quarterly revenue next week so more cuts will come
In a company -covering memo for workers, Microsoft CEO Satya Nadella has said that the company’s recent job “elimination” has been “weighed heavily” on him.
Nadella explained that he “recognized[s] The uncertainty and the apparent incongruence in the times we are in “-even Microsoft is” thriving “and the number of employees remains largely unchanged, many thousands have still lost their jobs, largely due to AI-induced efficiency upgrades.
To justify changes in the workforce, Nadella Roller explained redefined due to developing customer needs and how users are starting to get work done.
Satya Nadella understands that workers are concerned about their jobs
The news comes as the company’s capital costs continue to rise – Microsoft plans to spend about $ 80 billion on AI infrastructure alone in 2025 – and yet redundancies can only save a small part of this consumption.
However, recent cuts have triggered widespread employees’ dissatisfaction, fear and dropping morals, with many fearing that the company could return to ‘old Microsoft’, where internal rivals, poor communication and job insecurity make it an unpleasant company to work for.
About 9,000 Microsoft workers lost their jobs in July 2025, with about 6,000 also going in May and hundreds of other, minor adjustments.
Nadella, who looked like the current situation with the early 1990s, when PCs and productivity software were democratized, Nadella noted: “It may feel messy at times, but transformation is always. Keep re -organizes. Scopes expanded. New opportunities are everywhere.”
The CEO also expressed that progress is not always linear, and in this case it could be dynamic, dissonant and demanding.
Nadella also pledged to tackle employees’ concerns at the company’s next town hall meeting as well as share more details in the earnings shell set at July 30.
