Microsoft cuts 15K jobs while stock hits $500—CEO addresses concerns

Microsoft CEO Satya Nadella has acknowledged that the company’s extensive layoffs in 2025 have been “weighing heavily” on him, addressing employee concerns in an internal memo following the elimination of over 15,000 positions this year. The cuts, which represent one of the largest workforce reductions in Microsoft’s history, have coincided with the company’s stock reaching record highs above $500, highlighting the tension between financial performance and employee morale during a period of industry-wide restructuring.

What you should know: Microsoft has laid off approximately 15,000 employees in 2025, including 9,000 people announced just a week before the stock hit its $500 milestone on July 9.

• The company employed 228,000 people as of June 2024, and Nadella indicated that overall headcount remains “basically flat” despite the layoffs.
• Microsoft’s workforce reductions are part of a broader tech industry trend, with over 80,000 positions eliminated across the sector in 2025 according to industry tracking.

What Nadella is saying: The CEO framed the layoffs within the context of an evolving industry landscape and Microsoft’s shifting mission in the AI era.

• “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 in Thursday’s memo.
• “This is the enigma of success in an industry that has no franchise value,” he explained. “Progress isn’t linear. It’s dynamic, sometimes dissonant, and always demanding.”
• “We must reimagine our mission for a new era,” Nadella continued, describing a shift “from a software factory to an intelligence engine empowering every person and organization to build whatever they need to achieve.”

Employee reaction: Some Microsoft workers have expressed disillusionment with the company’s decisions despite its strong financial position.

• A Microsoft director posted on LinkedIn: “I have loved working for this company, still do, but this has done so much damage to that loyalty because it has shown that Microsoft’s espoused values do not apply to business decisions at the macro level.”
• Social media posts from employees in recent months have reflected growing discontent about the cutbacks given Microsoft’s market-leading status.

The big picture: Microsoft remains the world’s second most valuable public company behind Nvidia, with its dominant Windows and Office franchises continuing to generate revenue while Azure cloud services experience accelerated growth.

• The company’s cloud infrastructure has become increasingly valuable as OpenAI and other AI companies rent Nvidia graphics cards through Azure to run AI models.
• Other major tech companies are making similar workforce adjustments, with Recruit Holdings, which owns job sites Indeed and Glassdoor, announcing 1,300 layoffs and citing artificial intelligence as a factor.

What’s next: Microsoft is scheduled to report its fiscal fourth-quarter results on Wednesday, which will provide additional insight into how the company’s cost-cutting measures are affecting its financial performance.