Microsoft CEO Satya Nadella has finally addressed the elephant in the room. In a memo sent to all Microsoft employees nearly a month after the company laid off as many as 9,000 employees, Nadella said the decision to fire people had been “among the most difficult” they have had to make.
“I want to speak to you about what’s been weighing heavily on me, and what I know many of you are thinking about: the recent job eliminations. These decisions are among the most difficult we have had to make. They affect people we’ve worked alongside, learned from, and shared countless moments with — our colleagues, teammates, and friends,” the memo read.
Even though Nadella expressed gratitude to the affected employees for their services and emphasised upon the stability of the company, saying “the headcount remained unchanged”, he didn’t discount the fact that more layoffs may be on the horizon.
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“I also want to acknowledge the uncertainty and seeming incongruence of the times we’re in. By every objective measure, Microsoft is thriving — our market performance, strategic positioning, and growth all point up and to the right. We’re investing more in CapEx than ever before. Our overall headcount is relatively unchanged, and some of the talent and expertise in our industry and at Microsoft is being recognized and rewarded at levels never seen before. And yet, at the same time, we’ve undergone layoffs,” the memo further read.
“This is the enigma of success in an industry that has no franchise value. 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.
Nadella next listed out Microsoft’s mission, priorities, and culture, saying it revolves around the potential of AI, as expected. Asking more than 200,000 Microsoft employees to “imagine if all 8 billion people could summon a researcher, an analyst, or a coding agent,” he said this could “unlock entirely new levels of agility and innovation”.
His three key business priorities, said the tech giant CEO, are security, quality, and AI transformation.
Security has been key at the company since last year after a series of cyberattacks took place. Microsoft is now “doubling down on the fundamentals” while focusing on AI, Nadella asserted.
“Security and quality are non-negotiable,” he said, adding that their infrastructure and services are mission critical for the world.
“Without them, we don’t have permission to move forward,” he added.
The continuous layoffs, meanwhile, should not create a culture of fear, Nadella insisted in the memo.
Urging his employees to keep the “growth mindset” culture in mind while the AI platform reshapes Microsoft’s products and business models, he said “it might feel messy at times, but transformation always is”.
“Teams are reorganising. Scopes are expanding. New opportunities are everywhere,” he rounded off.
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