Microsoft CEO Addresses 'Enigma' of Layoffs

Microsoft CEO Satya Nadella addressed growing internal unease at the company Thursday morning in a company-wide memo that acknowledged the 'uncertainty and seeming incongruence' of conducting layoffs while achieving record profits and AI investments. The tech giant has eliminated more than 15,000 positions in 2025, including 9,000 cuts in early July alone, marking one of the most aggressive periods of job reductions in Microsoft's history.

Nadella described this as the 'enigma of success in an industry that has no franchise value,' noting that Microsoft is thriving by 'every objective measure' with strong market performance and record capital investments. '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 President Brad Smith said that an estimated $80 billion in capital expenditures over the past year created pressure to reduce operating costs.

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