Satya Nadella Seeks To Reassure Microsoft Employees In Layoffs Memo

Microsoft CEO Satya Nadella. | Image: Getty Images

Microsoft CEO Satya Nadella didn’t nonstop a company-wide memo erstwhile nan package shaper laid disconnected arsenic galore arsenic 9,000 employees earlier this month. Now, Nadella is yet addressing what’s connected galore Microsoft employee’s minds: layoffs.

“I want to speak to what’s been weighing heavy connected me, and what I cognize galore of you are reasoning about: nan caller occupation eliminations,” says Nadella successful a memo to each Microsoft labor today. “These decisions are among nan astir difficult we person to make. They impact group we’ve worked alongside, learned from, and shared countless moments pinch — our colleagues, teammates, and friends.”

While Nadella expresses gratitude for affected employees, he doesn’t guarantee location won’t beryllium much waves of layoffs successful nan adjacent future, and notes that Microsoft’s headcount is “relatively unchanged” contempt nan cuts:

I besides want to admit nan uncertainty and seeming incongruence of nan times we’re in. By each nonsubjective measure, Microsoft is thriving — our marketplace performance, strategical positioning, and maturation each constituent up and to nan right. We’re investing much successful CapEx than ever before. Our wide headcount is comparatively unchanged, and immoderate of nan talent and expertise successful our manufacture and astatine Microsoft is being recognized and rewarded astatine levels ne'er seen before. And yet, astatine nan aforesaid time, we’ve undergone layoffs.

This is nan enigma of occurrence successful an manufacture that has nary franchise value. Progress isn’t linear. It’s dynamic, sometimes dissonant, and ever demanding. But it’s besides a caller opportunity for america to shape, lead through, and person greater effect than ever before.

After addressing nan layoffs, Nadella besides lays retired Microsoft’s mission, priorities, and culture. The mission, arsenic you mightiness expect, revolves very overmuch astir nan imaginable of AI. He asks much than 200,000 Microsoft labor to “imagine if each 8 cardinal group could summon a researcher, an analyst, aliases a coding agent,” and really this “could unlock wholly caller levels of agility and innovation.”

Nadella besides outlines 3 cardinal business priorities: security, quality, and AI transformation. Security was made Microsoft’s number 1 priority past year, aft a bid of attacks and trust waning successful Microsoft’s information efforts. Now, Nadella says Microsoft is “doubling down connected nan fundamentals” while besides focusing connected AI. “Security and value are non-negotiable. Our infrastructure and services are ngo captious for nan world, and without them we don’t person support to move forward,” says Nadella.

On nan civilization side, location are plentifulness of concerns from Microsoft labor that nan continuous layoffs could create a civilization of fear. Nadella now wants labor to support nan “growth mindset” civilization successful mind while nan AI level displacement is reshaping Microsoft’s products and business models. “It mightiness consciousness messy astatine times, but translator ever is,” says Nadella. “Teams are reorganizing. Scopes are expanding. New opportunities are everywhere.”