Microsoft has let go of over 15,000 employees in 2025, marking a turbulent chapter in its transformation towards artificial intelligence. The emotional weight of these job cuts has reached the very top, with CEO Satya Nadella opening up in a candid internal memo shared with employees on Thursday. His message addressed the most recent round of layoffs—about 9,000 in early July—and acknowledged the rising anxiety within the organisation.

“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,” Nadella wrote, as reported by CNBC. As of June 2024, Microsoft’s global workforce stood at 2,28,000, but the company has not confirmed a current total. Nadella, however, stressed that the overall headcount remains “basically flat.”

Despite the sweeping cuts, investor confidence appears unshaken. On July 9, Microsoft shares closed above the $500 mark for the first time—a milestone reached just a week after the latest layoffs. Analysts credit the surge to Microsoft’s leading position in artificial intelligence, enterprise software, and cloud services.

Nadella acknowledged the contradictions. “This is the enigma of success in an industry that has no franchise value,” he wrote. “Progress isn’t linear. It’s dynamic, sometimes dissonant, and always demanding. But it’s also a new opportunity for us to shape, lead through, and have greater impact than ever before,” he added.

Microsoft is not alone in making such decisions. The broader tech industry has seen more than 80,000 job losses in 2025 alone, as firms adjust to a world increasingly driven by AI. Recruit Holdings—the parent company of job platforms Glassdoor and Indeed—recently announced plans to cut 1,300 jobs in its HR tech segment, pointing directly to artificial intelligence as the primary cause.

In his memo, Nadella hinted at an evolving vision for the company. For the past ten years, Microsoft has operated under the mission to “empower every person and every organisation on the planet to achieve more.” But with the rise of generative AI, he believes it’s time for that mission to transform.

As Microsoft prepares to announce its fiscal fourth-quarter results on Wednesday, anticipation is running high. Both its investors and employees are closely watching how the company navigates this complex period.