Redmond, July 25: Microsoft CEO Satya Nadella shared a memo to the employees explaining the reason behind what to led to the massive job cuts this year. The Microsoft layoffs in 2025 affected nearly 15,000 employees, and Nadella explained the need to cut some of the roles despite boasting higher profits. Microsoft has laid off these employees in multiple rounds, affecting different levels of the organisation.

Microsoft CEO Satya Nadella explained in a recent memo to the employees that the layoffs implemented by the tech giant were "weighing heavily" on him. However, he said the company eliminated the jobs to focus on the AI transformation. Satya Nadella addressed all the employees and said, "I know many of you are thinking about recent job eliminations..." Intel Layoffs: US-Based Chip Giant To Cut Over 24,000 Jobs by End of 2025 and Scrap Global Expansion Plans in Germany, Poland; CEO Lip-Bu Tan Sends Memo to Employees.

Microsoft Layoffs This Year Were 'Difficult': CEO Satya Nadella

Satya Nadella sent the memo to over 2,00,000 employees working at Microsoft and said, "These decisions are among the most difficult we have to make." He said that the Microsoft layoffs affected the people who worked alongside the employees and had shared countless moments. He referred to these affected individuals as "colleagues, teammates, and friends."

The CEO shared the memo after Microsoft cut 7% of the workforce, the largest since 2024. Amid the job cuts and AI transformation, Microsoft stock climbed 21% this year, and the per-share price soared above USD 500. The tech giant reported USD 75 billion in net income in the fiscal quarter.

Microsoft is Successful Due to High Profits Amid Layoffs

Amid the layoffs, CEO Satya Nadella said, "Microsoft is thriving", indicating how the tech giant has achieved higher market performance, strategic position and growth. He said the company was investing more in CapEx than ever before amid a headcount reduction. Tech Layoffs 2025: 51,028 Employees Laid Off by 112 Companies So Far This Year Due to Various Reasons, 23,486 Laid Off in April Alone.

Microsoft CEO Satya Nadella referred to this situation of gaining profit while losing workforce as "enigma of success". He said, "... 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 above story first appeared on LatestLY on Jul 25, 2025 05:03 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).